Could Commercial Real Estate Investing Be the Next Big Payoff?

DuPage County commercial real estate attorneysMany homeowners, lenders, and investors suffered a severe loss during the housing market crash of 2007. Others found an opportunity. They were buying, not selling. Why? Because, as every wise investor knows, the market eventually recovers. Sometimes it can take years for that to happen, but the payoff is often worth the risk. Now hedge funds are preparing for the next big market crash; only this one involves commercial real estate. Could it be the next big payoff for investors? Perhaps. The following explains more.

The Perfect Storm

Retailers, big box stores, and malls have been struggling for some time now, but many have managed to hang on, if only by a thread. Unfortunately, it appears they could be in for the perfect storm in this upcoming year. Expert analysis shows that approximately $3.5 billion in retail loans were consolidated in 2016.

Malls, which are reliant on these retailers and the foot traffic they bring, have started struggling as well. The more the malls struggle to bring in business, the more stores that close – and so goes the cycle of devastation. It is this cycle, paired with topped out commercial real estate prices, which has experts believing the market is about to crash. Those same experts are ready and waiting in the wings, hoping to cash in on the misfortune of others.

Investing During a Market Crash

Although it is possible to turn a profit by procuring distressed properties, there is also a significant amount of risk involved. Understanding these risks, including what they are, why they exist, and how to mitigate against them, is crucial to successful investing. Unfortunately, because each market is varied, each property is unique, and each investor’s vision is different, blanket statements are ineffective at guiding those who hope to bet against the market. Thankfully, a commercial real estate lawyer may be able to help.

Benefits of Hiring a Commercial Real Estate Lawyer

Commercial real estate lawyers are not always necessary, but they are always advised. Not only can they assist you with the legalities, such as closing and due diligence, but they can also help in weighing the pros and cons of a potential property.

Learn more by contacting Stock, Carlson, Oldfield & McGrath, LLC. Committed to your best interest and financial future, our DuPage County commercial real estate lawyers offer seasoned advice and sound legal counsel. Schedule your personalized consultation by calling 630-665-2500 today.


Due Diligence when Purchasing Commercial Real Estate

Illinois purchasing commercial real estate, DuPage County Real Estate AttorneyOne of the most exciting steps a small business owner can take is purchasing a piece of commercial property in order to expand his or her business. Whether the purchase is because the business is expanding and needs a bigger facility or the business is generating more than enough income to go from renting commercial space to owning it, the excitement can be akin to a person purchasing their first home. However, it is critical for any business owner to do due diligence on any commercial property they are considering buying.

The first step a potential buyer should take is to hire a title company to ensure the property has a clean title. A title company search can reveal actual owners, any liens, any covenants, any easements, or other restrictions which could hinder plans for the property.

It is also important to hire an independent company to perform a survey of the property. Establishing boundary lines, right-of-way easement, and access roads is a critical step in due diligence.

An owner of a property is legally responsible for any cleanup costs of all environmental contamination, even if that contamination was caused by a previous owner. Obtaining an environmental condition report will reveal whether or not the property has any lead-based paint, mold, underground storage tanks, or any other factors which could cause contamination.

Depending on what the property is currently being used for, or what the buyer’s plans are, checking with the municipality to make sure that all plans meet its zoning laws is another important step. It may even be prudent to consider having third-party prepared zoning report done.

Other crucial factors included when performing due diligence on a potential piece of real estate are investigating any current leases which may be in place, as well as certificate of occupancies. Also, make sure to check current tax certificates of the property. The property must additionally be compliant with the Americans with Disabilities Act and any other state or municipal accessibility codes.

Purchasing commercial property—or any kind of property—can sometimes feel overwhelming when trying to ensure that you are covering all the bases in due diligence of the property. That is where an experienced DuPage County real estate attorney can help. Call Stock, Carlson, Oldfield & McGrath LLC at 630-665-2500 today.