Investing in commercial property is a substantial commitment that requires careful consideration of various factors. To make well-informed choices, it is crucial to examine different legal practice areas that may affect your investment and operations. At Cobb Cole, a team of 23 attorneys across 13 distinct practice areas collaborate to address challenges, develop proactive strategies, and provide clients with comprehensive proposals.
Here are five key practice areas to keep in mind when entering the commercial real estate market:
1. Real Estate Law
At the heart of any property transaction is real estate law. This area covers everything from contracts and negotiations to property rights and disputes, such as leases, easements and boundaries and 1031 exchanges. A solid grasp of real estate law can safeguard your investment and streamline the purchasing process.
2. Land Use
Understanding land use regulations is crucial when purchasing commercial property. These regulations dictate how the land can be developed or used, which can directly impact your business operations. Zoning laws, building codes, and usage restrictions are just a few factors that can affect your property’s potential. A land use attorney can help navigate these regulations and assist in applying for any governmental approvals or permits necessary for your intended use.
3. Environmental Law
Environmental considerations are becoming increasingly vital in commercial property transactions. An environmental assessment can uncover potential liabilities such as contamination or compliance issues. Consulting with an attorney who specializes in environmental law can help ensure that you are aware of any environmental risks associated with the property and can guide you in taking necessary steps or negotiating terms accordingly.
4. Business Law
When investing in commercial real estate, it’s essential to consider how the acquisition aligns with your business goals and current business structure. Business law encompasses various issues that may arise, including the formation of entities, structuring relationships between affiliated entities, contract negotiations, and compliance with local, state, and federal regulations. A business attorney can help assess the implications of your property purchase on your business structure and operations, ensuring a smooth integration into your broader business strategy.
5. Tax Law
Lastly, the tax implications of purchasing commercial property cannot be overlooked. Understanding the tax consequences of how the property is owned, taxes on rent, depreciation deductions, and potential tax incentives is critical for maximizing your investment’s profitability. Consulting a tax attorney with experience in real estate can provide valuable insights into the financial aspects of your purchase, helping you to make informed decisions that could save you money in the long run.
Purchasing commercial property is a multi-faceted endeavor that requires careful consideration of various legal practice areas. By seeking guidance from professionals in real estate, land use, environmental, business, and tax law, you can navigate the complexities of the property market with confidence. This holistic approach will not only protect your investment but also position your business for future success. Make sure to conduct thorough due diligence and leverage the expertise of qualified professionals to achieve your commercial real estate goals.
