A Lawyer’s View on Commercial Real Estate in Albany

Dealing in commercial real estate is all about ensuring you get things right the first time around. When it comes to residential properties, you have more leeway for making mistakes. This is not the case with commercial property investments and letting. When you are dealing with commercial properties, you are going to be investing a lot of money in one shot. Look through these tips and implement them before investing in commercial real estate in Albany.

It is important to make sure you are hiring the right kind of professionals on your team before moving forward with commercial property investments. There are many things you need to take into account besides the actual purchase process. For example, you need to consider any rental leases that are in place. If you can get a lawyer that understands this side of the business and the legal issues that come along with it, you will be better off. This is why a lot of people spend good money on getting a good lawyer.

When looking to purchase commercial real estate, you have to make sure you have a purpose behind purchasing it. What are you going to do with it? Make it a retail outlet? This will ensure that you get an optimal solution that is not going to be wasted.

Always make sure that you have a long-term plan before moving forward. This will make sure that you are looking at maintenance as well. There are a lot of expenses that can come along with such purchases (i.e. rewiring, plumbing, and roofing). Often the tenant will be responsible for these upkeep issues but you need to check that these are specified in the commercial lease with your lawyer.

Make sure that you know what underlying problems might arise. Pro-formas tend to look nice at first glance, but that does not mean they are completely valid. You have to be careful before venturing down this path. Make sure that you are looking into what would happen if you lease it for six months compared to only two. What could happen if you do this?

Always look to do a bit of research prior to purchasing the property. This means the city and neighbourhood have to be looked at. The area should have a lot of potential with many prospective consumers in and around the area. Is your property retail or industrial? These will have an impact on the type of local activity you need to consider. It should also be a safe place. If there is vandalism or mugging in the area this will not attract good tenants.

Whenever you begin to negotiate the mortgage, it is critical to get a long grace period. This can ensure that you are not penalised when you want more time for the tenant to pay you. This can be very helpful in getting more tenants for your commercial property once it has been purchased.

Never let this process get the better of you because it is not so difficult once you get a hang of it. Always follow the information that is being provided to you, but don’t be afraid to do your own research too. If you don’t end up doing this, you are going to make a decision which will leave you broke. This is a risk no one wants to take and you shouldn’t be either as long as you follow these tips.

However, as mentioned at the beginning it is essential that you find the best people to work with you. Perhaps the most important is a good commercial real estate lawyer in Albany. A highly experienced firm of lawyers is McVeagh Fleming. They have specialists in this aspect of commercial and property law who will be able to advise on many aspects of investing in commercial real estate in Albany.