With the current state of the world, many people have been concerned with the health of the commercial real estate market. While it may be true that many individuals and entities have put off buying or leasing commercial property out of fear of making a bad investment, the truth of the matter is that business deals continue to be made in the commercial real estate market, as one recent report highlights.
Warehouse and distribution center demand remains strong
Although the economy may be struggling a bit at the moment, businesses continue to seek out space for warehousing and distribution purposes. This is shown by the sheer number of people who work in these environments, which rose by more than 2% in October, but also by the actually deals being conducted. Online giant Amazon plans to open its third fulfillment in the state of Mississippi, while coffee retailer Starbucks is extending its lease of a large facility in Tennessee.
Some real estate professionals have indicated that there’s not enough supply to meet the demand for large industrial space. This means that prices are probably going to continue to rise and those looking to lease or buy need to make sure that they are doing everything they can to obtain favorable terms that don’t leave them in a financial bind years from now. On the flip side, those looking to sell commercial property need to have a realistic understanding of the value of their property.
Don’t walk blindly into your commercial real estate deal
While this is great news for the commercial real estate market, it’s important to realize that there’s a lot more to closing one of these deals than just price. To get the best arrangement you can for you and your business, you need to have a firm understanding of every aspect of a commercial property and how it might affect you further down the road. You’ll also want to ensure that your deal is conducted in a way that is legally valid and protects you from any legal disputes. Facing these matters on your own can put you and your business at risk, which is why it’s often beneficial to have an experienced real estate attorney on your side when dealing with these matters.