To the untrained eye, a commercial real estate transaction should seem simple. A business sees an ideal location, finds out how much it would cost to run their operations from the location, negotiates a price with the owner, and the transaction concludes.
While this would be an ideal scenario, it often does not happen that way. Instead, there may be a complicated dance between the property owner and the business owner that may go several rounds before the transaction is complete.
This post will highlight a few of the steps and how a skilled real estate attorney can help when a business decides to relocate.
Getting out of the current lease: Indeed, the grass may be greener on the other side of the fence; but before heading to greener pastures, a business may have to negotiate a proper exit from its current venue. An experienced lawyer can negotiate a buy out of the current lease so that both sides can benefit.
Finding a suitor: Perhaps an exit can be expedited if there is a willing suitor to take over the rent payments at the former location. Here, a real estate attorney may have options to help a business find another entity that may be suitable for the location.
Drafting new lease terms: In many instances, money may be the primary obstacle that prevents a deal from getting done. A real estate attorney can help in negotiating lease terms that satisfy all sides. This type of negotiation is critical when a business owner experiences problems exiting a current lease; either because market rates have plummeted since the lease was first signed, or a potential suitor may not be able to agree to current market terms.
Ariel Bedell is an experienced attorney at The Loftin Firm. For questions relating to any other California real estate, corporate governance, land use, or estate planning matter, contact Ms. Bedell at 760-814-9649.