Commercial real estate is one of the most understandable of investments. We live and work within real estate. It is tangible. One can see it. Yet, underneath this veneer of simplicity there are many legal and practical issues to consider. These issues are impacted by the market and the leverage of the parties, both of which are moving targets.
Purchasing real estate presents a number of threshold questions. Should a real estate investor use his or her own money, or seek investors? What type of legal structure makes the most sense and why? When one is in the process of acquiring a property, what are the most important items to inspect? What if the buyer finds a big problem? When one wishes to sell a real estate investment, how much is the right price? What is the value and how is it determined?
At its base, commercial real estate is all about cash flow. What makes this possible is the commercial lease. A lease creates a long-term relationship between landlord and tenant, who have diametrically opposing goals. How does one navigate through the minefield of legal issues in a lease and end up with a contract that both sides can live with for years to come?