With the often-large sums of money involved in most commercial real estate transactions, the time and effort you spend identifying and avoiding bad deals is well worth it.
Hiring a South Florida commercial real estate attorney is perhaps the best way to get an experienced viewpoint and spot a bad deal before you sign on the dotted line. Below are some other tips for avoiding a costly situation.
Perform full due diligence
Due diligence steps for any commercial real estate transaction should never be rushed or partially completed, whether you are buying or leasing.
Depending on the type of deal, full due diligence may take several weeks, from inspections to checking rent rolls, market data, zoning compliance, title searches, tax research, income documentation, and so much more.
Larger transactions often have a very complex due diligence process. Regardless, you will never want to skip any due diligence steps, and it’s advisable to get the help of your attorney to determine which of them you absolutely need to perform.
Get accurate zoning and use information
Zoning issues are some of the most common problems that occur after a deal has been finalized. They are also easily avoidable with some research, phone calls, and the help of an attorney.
Often, zoning information is not accurately represented or misleading, or there may be special contingencies regarding reuse. Be sure to get the full details about zoning before you commit to buy or lease any commercial property so that you can utilize the space for your intended purpose.
Avoid rushing into a deal
The time may be right for a key acquisition, or you may need to get your business launched quickly, but always avoid rushing into a deal without adequate research and due diligence.
Get the assistance of an experienced commercial real estate attorney in Florida to save you time on some of the most crucial research steps. If a seller seems overly eager to close on the transaction at a pace you aren’t comfortable with, it may be a red flag that something isn’t right.
Get help with your contracts
Your lease or purchase agreement always should be reviewed by an attorney, for your own sake. The other party might provide you with the contract, but they are likely to structure it heavily in their favor. Without reviewing it or negotiating the terms, you can easily be stuck with a highly unfavorable deal.
Call Schecter Law today at (954) 779-7009 for any assistance with due diligence or preparation for your next commercial real estate deal.