Is commercial real estate different than home buying? The short answer is “yes.” If you have already navigated the process of buying a home, then you certainly have some insightful experience to help you and your business with finding good commercial properties for the location of your business. There are a few differences to bear in mind as you look for real estate lawyers to help you make those decisions.
Lease, Not Buy
The biggest difference with commercial real estate is that most businesses are going to be leasing a property instead of buying it. Most businesses are located within a certain district or development sector, where offices and property are owned by a third party and leased by multiple different businesses. They have long-term leases, usually lasting multiple years, sometimes up to as many as 10. This isn’t so much the case for larger corporations and office buildings, who might build a plot of land and build their own facility onto it.
Commercial Real Estate Risk
Homeowners are protected from certain legal ramifications through the law that are not afforded to commercial real estate. Whenever an infraction is committed by a business, it usually escalates quickly to a commercial or federal court instead of how, with homeowners, infractions are sent to housing courts that are known to be “tenant friendly.” It’s assumed that, as a business of any sort, you have or have consulted professional legal counsel in buying or leasing your business building, therefore grace for infractions tend to be more rigid for businesses than for homeowners.
Hiring and consulting a real estate lawyer is absolutely essential in commercial real estate. A business is responsible for the ramifications of its actions on a higher level than a residential homeowner. Perhaps you’re attempting to start a family doctor’s clinic? That’s one example of how you’ll need to get a zoning permit for creating bio-hazard waste and disposing of it, particularly during flu season when you’re giving so many immunization shots.