Are you thinking of buying, leasing, or selling commercial real estate? Are you dealing with a “cloud on the title to your real estate such as a tax lien or the need to have a mechanic’s liens removed from (or asserted in connection with) commercial real estate? If so, it is important to involve an experienced real estate attorney as early as possible in the process. An attorney can advise you about important items to include in the contract or lease, safeguards that can protect you in case the other party does not live up to their obligations, and about provisions that can furnish you with remedies in case there are problems.
Leasing Commercial Real Estate
Many leases for commercial real estate can, if you negotiate them correctly, contain protections for your business against the opening of competitors in the same mall or property. They can also provide for your landlord to modify the property in specified ways to make it suitable for your type of business. Commercial leases often contain provisions that make you responsible for a portion of the maintenance, taxes, and other expenses of the property and its common areas. An experienced real estate attorney can examine such lease provisions and make sure that you are not paying a larger share of such costs than you should and that you are protected against changes in other units that could quickly boost costs, such as your landlord renting to another business which generates a far greater volume of waste or uses a significantly larger volume of water, if your unit’s water usage is not individually metered.
Security in a mall or in a building may be another area of concern, including such things as controlled access to a facility, security cameras or other security devices, and adequate illumination, including in parking lots or parking structures. It is important that you, your employees, and your customers are safe, and that your valuable business and property is adequately protected.
Future Lease Renewals
When you are leasing commercial space, you want to have a suitable option to renew for a sufficient period of time, as location may be key to your businesses success. At the same time, if at all possible, it may be important to anticipate possible future changes in the character neighborhood and its traffic patterns that may make the location no longer beneficial, and try to craft into the agreement foreseeable circumstances in which an early termination of the lease may be appropriate.
Rents, as we all know, tend to go up over time, and many commercial leases have such increases built in as subsequent years go by. An experienced and knowledgeable real estate attorney can help you negotiate the best possible deal, given the general commercial real estate market in the area that you are renting.
Protecting a Landlord’s Interests
Having an experienced real estate attorney is just as important in protecting the legitimate interests of the landlord or seller of commercial real estate. A lease should make sure that a commercial tenant pays their fair share of the common expenses of the property and for any added expenses or external environmental impact they have on the property and its surroundings, such as generation of waste, water usage, or the need for additional parking, security, or maintenance due to the level of traffic and patronage.
Commercial tenants should be adequately insured as to various types of liability that may arise from the operation of their business, which can vary greatly, depending on such things as whether food is prepared or served, alcohol is provided, or sporting activities are conducted in the premises rented. An experienced real estate attorney can advise you as to what types of insurance may be important to insist on.
Buying or Selling Commercial Real Estate
Buying or selling commercial real estate in some ways is similar to buying and selling a home, but with added levels of complexity added on. Buyers are understandably concerned about the accuracy of disclosed books and records, and about the past income that the property has generated, on average, over time, as well as the detailed expenses and taxes, and whether there are known changes anticipated that may alter the financial picture in the foreseeable future, or a known need for repairs or modifications that will necessitate extra expenditures.
Sellers are understandably concerned about getting the best value for the property they own, and making sure that they are adequately protected in case a buyer does not follow through and complete the purchase, such as if their financing falls through. Properly drawn up contracts, with adequate amounts of earnest money, along with strict deadlines and penalties can help ensure that a seller’s lost opportunity costs are covered if the deal falls through and the property has to be put back on the market.
Mechanic’s Liens, Zoning and Regulatory Compliance
In today’s business environment, compliance with zoning, licensing, and other regulatory laws is more important than ever, and increasing complex. Whether you are the tenant or landlord, or the buyer or seller of commercial real estate, there is really no substitute for having an experienced real estate attorney to advise you.
Be Guided by Experience
With an experienced real estate attorney to guide you, this often stressful process does not have to be stressful at all. With over 20 years of experience as a local and qualified commercial real estate law firm in the Chicago area, we offer what you need. Conveniently located in the Southwest Suburbs close to many expressway exits, with flexible evening and weekend hours available, you should Call Us Now for a no-obligation absolutely Free Confidential In-Person Consultation at (708) 598-5999 or fill out the contact form to the right.
