3 Top Considerations for Commercial Real Estate Purchases
Goodsill
by rajayogan.s@thomsonreuters.com
6M ago
The purchase of commercial real estate can provide a business with its own facilities or a space on which to construct an edifice custom-designed to its needs. Instead of paying rent on a property that may not be ideal, an organization can accrue equity in a property that is exactly what it requires. Of course, such a large transaction creates a financial responsibility for a company that will likely be one of its biggest contributions to its ongoing business expenses. Therefore, approaching this process requires careful consideration. There are many elements that influence whether a particula ..read more
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Commercial Leases: What is a Net?
Goodsill
by bhargavi.sr@thomsonreuters.com
1y ago
When you are drafting or signing a commercial lease, it may have something called a “net.” It’s important to understand what this means because it’s going to define the obligations set out by the lease. In general, you could have a standard commercial lease, a single-net lease, a double-net lease or a triple-net lease. Each number simply adds more obligations to the person who is leasing the space, removing them from the property owner. How the progression works For example, the most basic commercial lease could simply say that the tenant has to pay rent every month and they get to use the spa ..read more
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Signs That Commercial Real Estate is in Poor Condition
Goodsill
by bhargavi.sr@thomsonreuters.com
1y ago
When you need to relocate, expand or open a separate (or new) business, it is time to start shopping for commercial real estate. Most commercial properties look great at first glance but may contain hidden defects or structural problems. Whether buying or leasing, the last thing you need is to get stuck with commercial real estate that is in bad condition. Knowing what to look for when vetting properties helps you identify condition issues. Below you will find information about two of the most common commercial property condition problems. Check the roof carefully Always ask to examine the roo ..read more
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Who Pays for the Maintenance on a Commercial Property?
Goodsill
by kristin.johnson@thomsonreuters.com
1y ago
If you rent a commercial property to run your business, you want to think about all of the different costs that go along with it. Simply paying the rent every month is just the beginning. One of the other major costs that you may face is maintenance for that property. You have to do upkeep or fix issues that may crop up and hinder your business’s productivity. But who is responsible for that maintenance, you or the landlord? What type of lease did you sign? The answer is not simple, as it can differ from case to case. It all depends on the type of lease that you signed. A standard lease may sa ..read more
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What is a Bailout Clause?
Goodsill
by kristin.johnson@thomsonreuters.com
2y ago
Whether you are a commercial landlord who is renting a property out to a tenant or a tenant who is renting or leasing property for their new business, you need to understand every single part of that lease agreement. It defines how this relationship will work and all of the options that each side has. One clause that is often used is known as a bailout clause. What is this, and how does it work? Defining sales numbers and projections What this means, essentially, is that both parties will agree in advance that the business has to make a certain amount of revenue in the space. For instance, per ..read more
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2 Ways the Right Building Permit Protects Your Investment
Goodsill
by kristin.johnson@thomsonreuters.com
2y ago
You might think it is easy to start building your real estate, but local and federal governments ask that you have permits before you build. These permits do more than check a few boxes on forms for the government. They can also help protect your financial investment and your business. Knowing why you should have building permits can keep you from many dangers and fines. Here are a few reasons having a permit can save you from trouble: You increase your protection There are plenty of risks when building real estate: A wall could fall in, the floor could give away or someone simply slips. Knowi ..read more
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Is the Right of First Refusal an Option in Your Real Estate Deal?
Goodsill
by kristin.johnson@thomsonreuters.com
2y ago
When you’re in business for yourself, there’s a lot to protect. If you’ve managed to secure a good location that’s right for your needs and convenient for your customer base, it can really hurt to suddenly be uprooted because your landlord decides to sell. That’s why you may want to see if you can work the right of first refusal (ROFR) into your lease. What’s a right of first refusal? In essence, this is a clause that lets you call “dibs” on the property you’re currently renting if the owner decides to sell. It can work in several different ways. For example: The owner receives an offer from a ..read more
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Understanding Key Clauses in Your Commercial Lease Agreement
Goodsill
by kristin.johnson@thomsonreuters.com
2y ago
If you’re leasing commercial space for your business for the first time – or even if you’re not a complete novice at this – you probably have far less experience with lease agreements than the property owner who’s presenting the contract to you does. These are typically long, complex documents. Don’t let the landlord tell you it’s “just pro forma stuff,” peruse it and sign. Think of it as a first draft. Commercial leases have numerous clauses. Many should be negotiable. Some you don’t want in any agreement you sign.  What are some of the most significant clauses? Let’s look at some key cl ..read more
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You Should Carefully Review a Commercial Lease Before Signing It
Goodsill
by utkarsh.dalmia@thomsonreuters.com
2y ago
Looking for the perfect place to lease can be a frustrating affair. Your needs may be particular, and landing the ideal spot can take time. However, when you find the premises that meet your specifications, do not rush into signing the lease agreement. Given that you will likely be there for a considerable period, it is important to review your lease before signing it. A lease is a legal document that needs due diligence on your part before signing on the dotted line. Below are some handy tips that you may want to consider beforehand. Conduct your research You may want to look deeper into the ..read more
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Watch Out for These Red Flags When Closing on Commercial Property
Goodsill
by kristin.johnson@thomsonreuters.com
2y ago
Buying commercial real estate comes with a degree of financial risk, but do not let that stop you from making a purchase. Owning commercial real estate opens many doors that can provide you with a lucrative income. Commercial properties are in high demand across all Hawaii locations, so it is critical to act on a property as soon as you know it meets your needs. Unfortunately, buying commercial properties can put you in jeopardy of making a bad deal. Looking for red flags can help you avoid acquiring real estate that will return little if any profit. Possible red flags you should recognize To ..read more
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