What Are Some Common Risks Involved in a Commercial Property Lease?

When you are renting property for your business you need to start out by asking who is paying for it to be improved. Who’s going to cover that cost so that I’m ready to open my door? Then you have to think about who are your neighbors. If you have a restaurant next to you, you might need to give consideration to what happens if flooding occurs and who is going to be responsible for odors that might come through. You also have to look at parking. Is there sufficient parking for my business? How much parking do my neighbors use? Is one of my neighbors the type of tenant that every Monday night for Monday Night Football they are going to be packed, so I better not plan on having customers show up?

There are a lot of things you need to think about when you are looking at leasing commercial property, but you really have to consider if my business is going to operate here, can it be successful. If the answer to that is yes, everything else can be resolved through good due diligence.

© 2014 Parsonage Vandenack Williams LLC

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What Are Some Common Risks Involved in a Commercial Real Estate Transaction?

In a commercial real estate transaction there are risks associated with making sure the buyer can afford to pay you, that’s usually the first thing the seller wants to figure out. From a buyer’s standpoint, you want to look at what kind of due diligence do you need to do. Do you need to worry about zoning regulations? Are the environmental hazards that have been on this property? Did there used to be a gas station? What are the title issues? Are there any easements running through it? If you are redeveloping the property you may be putting a new building up. You need to make sure that you have the right to put it where you really want to on that piece of property.

Every transaction is different and every transaction has its hot points. Sellers want to make sure they are getting paid and they know when they are going to close and buyers want to make sure they are really going to be able to use the property the way they want to once they close.

© 2014 Parsonage Vandenack Williams LLC

For more information, Contact Us