Commercial real estate is a high-risk business, but the rewards can be very high, so long as things go well. One area where even a beautifully well-planned project can go wrong is with zoning. When zoning restrictions present a problem for new development proposals, the developers must go through a process of hearings, and possibly appeals. It can be time-consuming and frustrating, but with the help of a good attorney, developers can usually work out a solution.
Sellers of commercial real estate should avoid common errors. For example, many sellers put off spending on repairs and hope that a buyer will lower the purchase price to cover this deferred maintenance. Unfortunately, potential buyers will always estimate that the repair costs are much greater than any discount. This creates a dispute over the costs of repairs and who will pay for them.
One of the most important decisions that Florida business owners may make concerns where they decide to set up their entity. While some businesses are transactional and may be run out of owners' homes, others may require physical space where manufacturing, distribution and other operations take place. When it comes to finding a place for a business to be located, owners need to decide if they want to rent space or buy their own commercial properties.
It can be hard to find the right property for a Florida business. Past posts on this blog have discussed the challenges individuals may face when they confront zoning and land use problems; issues can also arise when prospective lessees run into trouble in the negotiation of their lease agreements. However, simply locating a property that meets a business's needs can be tough on its own, and this post will discuss some of the considerations business owners may wish to make before committing to commercial properties.
Not every Florida business is able to or interested in buying the physical space where it will operate. For some, cash flow may prevent them from investing in real property when they are just getting off of the ground, and others may wish to have the ability to move if they locate spaces that more amenable to their needs. Therefore, commercial lease agreements are common contracts that business owners deal with I the course of their operations.
Part of the Tax Cuts and Jobs Act of 2017, the Opportunity Zones program offers tax incentives meant to encourage investors to contribute to the development of low-income areas across the country. Florida’s Opportunity Zones provide an opportunity for developers to buy and invest in properties in up and coming areas.
Real property is often divided into two categories: residential and commercial. While residential properties are those on which homes, apartments, and other dwellings are built, commercial properties include practically everything else. A commercial property is one that is involved in commerce, whether it is manufacturing goods, selling products, or doing something else that involves running a corporation or business.