Perhaps you are just starting a business and are not quite familiar with all of the ins and outs of renting commercial real estate. Here are a few common questions about commercial real estate transactions and some expert answers:
- What exactly does commercial real estate mean? Commercial real estate can refer to any real property transactions in a business context. This could mean something as basic as renting office space, or owning and selling real property (i.e. an apartment complex) as part of the sale of a business. The property could be agricultural, industrial, or even residential spaces being used for business purposes.
- What are some typical risks of a commercial real estate transaction? Some commercial properties might come with liens or other title problems depending on the type of business. Other common issues include zoning concerns or the presence of hazardous materials. Those looking to buy commercial real estate also need to consider whether the location of the real estate serves their business’s needs.
- Does it matter how I take title to commercial real estate property? There are many issues that could arise regarding how you chose to take title. Taking title to the property as an individual is risky, because you could be dealing with possible liability exposure that you would be better off minimizing or avoiding altogether. Experts recommend that instead renters take title to commercial properties in the name of a limited liability company with a single purpose.