Commercial Real Estate Law and Property Transactions

Commercial real estate law is used daily by businesses, whether they’re smaller “mom and pop” companies or large conglomerates with multiple locations. Either way, the legal framework around real estate sale, use and ownership for business purposes requires specialized knowledge. To get the full value from commercial property transactions and protect your rights through every stage of the process, it is best to consult a NJ real estate lawyer. In this article, our team at SCC Legal will discuss the fundamentals of commercial real estate and how an experienced lawyer is essential to any property transaction you engage in. 

Types of Commercial Property Transactions  

There are several categories of commercial property, including retail, office space, industrial property, and multi-family rental properties such as mixed-use and apartment buildings. Three types of commercial property transactions are used to develop, buy, sell, and manage these commercial properties:    

Leases. Lease transactions take place between a commercial landlord and the tenant renting the property. The lease agreement covers aspects such as renewals, terminations, and maintenance obligations.

Sales and Purchases. The most common of all commercial property transactions, both parties negotiate to buy or sell property at an agreed-upon price. Sales transactions can be financed with a mortgage, bringing additional legal ramifications, or purchased outright. 

Development. Development transactions, where new commercial real estate is constructed or existing properties converted for new use, can be complex. They involve multiple parties, including governmental bodies, lenders, and contractors. 

Risk Management and Commercial Property Protection  

The services of a real estate law professional help property owners manage risk and ensure commercial property protection. Commercial real estate owners must participate in lease and contract negotiations, overcome land use and zoning restrictions, abide by environmental and tax requirements, and obtain funding. Requirements for these property transactions can differ per county, state, and industry. 

A property is only profitable as long as tenants pay rent. Tenant turnover is costly and a risk for the commercial property owner and their financiers. Commercial real estate lawyers take all these factors into account when advising clients. 

Tenant Rights and Commercial Landlord Responsibilities  

Tenant rights and commercial landlord responsibilities are detailed in a lease, which should ideally be drafted or reviewed by a commercial landlord attorney. The terms of this contractual agreement must clearly state each party’s responsibilities and rights. In a commercial lease, the landlord is generally responsible for maintaining a building’s exterior and the property’s insurance, while the tenant ensures the interior is maintained. A tenant will also pay for services unless otherwise stated in the commercial rental agreement.   

Legal Considerations for Commercial Property Owners in NJ  

A commercial property owner has to take multiple legal considerations into account, from ensuring all lease agreements comply with local and state laws, to reviewing a property title to determine if there are any unpaid taxes or environmental problems that could delay a purchase. Why spend time on these matters when a commercial real estate lawyer with extensive experience in these transactions can do it for you? Fact of the matter is, you cannot be spread thin when you need to run a business and in the process of  buying or selling more property. That’s where SCC Legal comes in. We can digest the legal ins and outs of all real estate documentation, guide you in the direction of the best value for your property and alleviate a good portion of the many business-related tasks on your plate. 

For more information on commercial real estate law, or if you want assistance with commercial sales and leases, please contact our team at SCC Legal today or visit us at: https://www.scclegal.com/

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