As experienced commercial real estate attorneys, we know how to tell the difference between wise property investments and costly ones. If you want expert legal advice that can make the difference, there’s no better firm than Estavillo Law Group. Contact us for a free consultation.
You wouldn’t buy stock in a company without researching pertinent market trends, its profit and loss history and other key financial factors. Investments in commercial real estate deserve the same due diligence.
Contrary to what many people think, property isn’t always a good investment—especially in the commercial sector. What’s more, owning commercial property can cost you more than it’s worth if you fail to seek legal assistance with things like drafting contracts, negotiating transactions, and exploring tax liability.
If you want to make owning and leasing commercial real estate a profitable endeavor in the Bay Area, it’s essential to partner with legal professionals. Luckily, the team at Estavillo Law Group has the resources and expertise to take your goals to the next level.
Keep reading to learn everything you need to know about owning commercial real estate in California, the risks of and benefits of doing so and how a commercial real estate attorney can help maximize your profitability.
Here’s the harsh reality: Investing in commercial real estate without legal assistance is a rookie move. Serious investors know that smart ownership starts with tried-and-true legal strategies. Give us a call at (510) 369-5177 to schedule a case evaluation today.
Our Commercial Real Estate Services
Buying commercial real estate—especially in expensive California markets—is a serious investment. That’s why potential real estate investors and owners in the Bay Area turn to us year after year. Here are a few of the commercial real estate offerings we provide:
- Oversight of all legal paperwork
- Contract preparation and review
- Negotiation of acquisitions and dispositions
- Explanation of laws, rights and documentation during the purchase process
- Inspection of property before purchase
- Compliance with local and state laws
- Exploration of tax liability
At the end of the day, you deserve the peace of mind that comes with knowing that someone has reviewed every detail, implication and possible outcome of your real estate transactions. Luckily, that’s what we do best.
What Is Commercial Real Estate?
Whereas residential real estate refers to property used solely for private housing, commercial real estate is property used exclusively for business purposes. The four main classes of commercial real estate are office space, industrial, multi-family rentals and retail.
Buying commercial real estate generally requires more capital and planning than investing in residential real estate, which is why it’s essential for prospective investors to seek legal assistance. Although investing in commercial real estate can be very lucrative, it also comes with several risks.
Risks of Buying Commercial Real Estate
Investors who’ve never bought commercial real estate before may be surprised to learn just how many rules and regulations they bump up against. Between taxes, a complex purchase process, maintenance costs and navigating potential disputes, the requirements for owning these properties are numerous and difficult to understand if you’re not familiar with real estate law.
Additionally, commercial real estate investors face the risk of tenant turnover, which can leave properties vacant with little notice. This risk is especially prevalent in areas of economic downturn and in industries that are increasingly turning to eCommerce platforms rather than brick-and-mortar businesses.
Unlike with residential property, owners of multi-business commercial properties may need to make many costly adaptations to accommodate for each tenant’s specialized trade. Despite the risks of buying commercial property directly, there are also many upsides to consider.
Benefits of Buying Commercial Real Estate
If you’re interested in buying commercial real estate, don’t let the risks scare you—there is a tremendous amount of money to be made if you invest smartly. In fact, one of the biggest benefits of owning a commercial property is they can generate impressive returns, especially in highly sought-after areas.
Another benefit of owning commercial real estate is that you can design longer lease periods than you’d be able to with residential property. With long-term tenants locked in, owners can enjoy the stability of a guaranteed monthly cash flow. Additionally, commercial real estate offers investors the potential for capital appreciation, as long as they maintain the property.
Do I Need a Commercial Real Estate Attorney?
If you’re on the fence about whether or not to hire a commercial real estate attorney, consider this: Commercial deals that happen without a lawyer are at high risk for litigation.
Not only do commercial real estate deals involve large sums of money, but they also require adherence to local and state codes and many complex regulations. Between tax liability, insurance, disputes and a sea of necessary legal documents, trying to buy or manage without a commercial real estate lawyer is next to impossible.
The real question isn’t whether you need a commercial real estate lawyer—it’s how to choose the right one. If you’re looking for a firm with expertise, resources and years of experience in the Bay Area, there’s no better place to call than Estavillo Law Group.
With free consultations, vast knowledge of real estate law in California and a passionate legal staff, our firm has what it takes to help Bay Area clients achieve their financial goals. Ready to explore a partnership? Contact us online to schedule a free case evaluation or give us a call at (510) 369-5177 today.