A commercial real estate investor may enter into multiple commercial leases for a specific property. In fact, commercial property may be used in multiple ways. For example, an investor may also enter into lending arrangements secured by retail properties. Commercial real estate loans can also be securitized.
According to recent data, retail lending has been on the increase in 2014. Compared to the first three quarters of the previous year, activity is up by more than 50 percent. According to commentators, refinancing may be one factor behind the growth.
Given the sophisticated opportunities available for commercial real estate owners, an attorney is frequently needed to conduct due diligence on any transactional documents. From properly valuing the commercial property to conducting due diligence on liabilities and contingencies, an owner needs to understand the terms to which he or she may be held accountable. That due diligence generally includes research into any applicable zoning or other governmental regulations.
A real estate attorney can also help a real estate owner estimate his or her future income stream from the property. That estimation can be a contentious point between developers and project owners, especially when construction is delayed or other obstacles arise.
Yet real estate disputes cannot always be avoided, despite the most thorough due diligence. A land use issue might arise even after construction on a new project has begun, requiring work to halt until resolution has been reached in the appropriate administrative or judicial forum. Commercial tenants might be in breach of contract, requiring an attorney to enforce the terms.
Yes, data suggests a renewed confidence in commercial real estate. However, confidence is not the same thing as cooperation. When disputes arise, a real estate attorney can be your advocate.
Source: Real Estate Weekly, “Retail lending continues to surge,” Jan. 20, 2015