Technology and the Commercial Real Estate Market – How Things Have Changed and What Lies Ahead

Naperville commercial real estate lawyersTechnology has impacted every major industry in the world, including the commercial real estate market – but how? Do the changes affect everyone in the CRE sector or just some people? Also, what can investors expect in the future? The following information explores the answers to these questions, and it provides details on where you can find quality assistance to meet your commercial real estate and investment needs.

How Shifts in Purchasing Behavior Are Affecting CRE

If you have noticed that you are buying more things online and fewer things at the store, you are not alone. In fact, most Americans can say the same thing. What does all this have to do with CRE? Investors who once built shopping malls and shopping centers are struggling, but many who have purchased warehouse space are seeing a boom.

The Need for Improved Data Collection and Communication

Investors in the residential real estate market have easy-to-use applications that they can use while at home or on the go. Sadly, investors in CRE do not have the same luxury. As an industry that has relied heavily on phone calls, emails, spreadsheets, and clunky software, CRE is sitting stagnant when it comes to tech. However, most investors would welcome applications that make the day-to-day tasks of running their business easier. At the very least, investors could collect and use data that pertains directly to their market or portfolio with less confusion (preferably in real-time).

CRE is Now a “Competitive Market”

Although CRE lags severely in its tech-friendly applications and software programs, it has grown into quite the competitive market. In fact, investors are now finding that they must act quickly when they spot a property they want. That makes having an attorney on-the-ready almost crucial to the future success of their business – especially since negotiations now tend to tilt more toward the seller’s favor in today’s competitive market. Investors are also encouraged to watch trends and think outside the box, as doing so could help spark a money-making idea or location that no one else has thought of yet.

Contact Our Naperville Commercial Real Estate Lawyers

At Lindell & Tessitore, P.C., we have the skills and experience you need for your next real estate transaction. Whether it is receiving assistance with due diligence, having us review a CRE contract, or assisting you with zoning ordinances, our Naperville commercial real estate lawyers protect the financial future and interests of your investment business. Start now by scheduling a personalized consultation. Call 630-778-3818 today.

Source:

https://www.forbes.com/sites/theyec/2015/11/19/four-trends-that-are-reshaping-the-commercial-real-estate-industry/2/#541f3c2d63a0

Commercial Real Estate Booming Across the Country – Does It Suggest an Uptick for Illinois?

Naperville commercial real estate lawyersThe commercial real estate market is booming all throughout the country, but does that necessarily mean that Illinois is in for a boom of its own? Not in the least. In fact, even novice trend predictors will tell you that you cannot make buying decisions based on trends alone. Instead, a wide array of variables must be considered – and some of them may be unique to the state, county, or city in which you wish to buy or develop property. So, whether it is zoning laws, market trends, or population growth projections that are encouraging you to examine Illinois, consider the following tips for deciding if this area may be right for your next project. You shall also learn what an experienced real estate attorney can do to ensure your best interests are protected.

Taking a Closer Look Commercial Real Estate “Boom”

Although some states are experiencing a clear boom in their commercial real estate market, most are struggling to keep their malls and warehouses full and open. Offices and stores remain unrented, especially the ones located in a less-than-prime spot. Apartments, particularly in metropolitan areas, also seem to have a lower demand than most investors would like. All this has caused the CRE market to stall in many places – including Chicago.

The market is not falling, but there is more competition. It is becoming a renter’s market – especially in the apartment sector – and that can, in some ways, be a good thing. It encourages fair prices for renters. It also creates a situation in which smart investors can set themselves up for long-term (and potentially even life-long) success.

Using the CRE Market Trends to Your Advantage

While, broadly speaking, the CRE market in America is decelerating rather than contracting, there are some smart investments that one can make for the future. For example, one could invest in suburban areas. These areas, which have seen a significant uptick in the state of Illinois – especially around major cities like Chicago – are more affordable for the working family population. Many of them drive in and out of the city to work, but their day-to-day lives are lived in tiny community-like settings. Give them what they want within the community and you create jobs, homes, and opportunities, all while improving your portfolio.

Apartments and office spaces, though vacant in some areas, may be listed at a price that is more favorable for buyers in the upcoming years. Though there would be no way to predict when a return might come, one can almost count on there being an eventual uptick. After all, people will always need a home or a place to run their business.

In short, look for the areas where you can use the market trends to your advantage. Better yet, see what no one else sees – the one thing that could set you up for the rest of your life. While you are at it, ensure you have an experienced attorney on your side, negotiating the best terms and ensuring that your due diligence has been done efficiently, effectively, and with your best interests in mind.

Contact Our Naperville Commercial Real Estate Lawyers

At Lindell & Tessitore, P.C., we understand what is at stake during an investment and we work hard to ensure your rights and best interests are protected throughout the entire transaction process. We can also assist with zoning issues, landlord-tenant disputes, and much more. Get the dedicated assistance that you deserve before starting your next project. Call 630-778-3818 and schedule a consultation with our Naperville commercial real estate lawyers today.

Sources:

http://www.postandcourier.com/business/charleston-s-commercial-real-estate-market-is-on-fire-and/article_e0a98a0e-a454-11e7-9f12-2767b6bd72c5.html

http://www.nhbr.com/October-27-2017/Continued-moderate-growth-seen-for-commercial-real-estate-market/

https://www.constructiondive.com/news/report-us-commercial-real-estate-to-grow-through-2019/507131/

http://www.chicagobusiness.com/article/20171103/ISSUE01/171109928/is-chicagos-real-estate-bull-market-running-out-of-steam

Dealing with Environmental Issues in Your CRE Development Project

Naperville commercial real estate attorneysEnvironmental issues can arise in any real estate transaction, but their potential consequences are often most severe in commercial real estate (CRE) settings. Part of the reason for this is simple: CRE projects involve more time, money, and resources. However, there are some additional obstacles that CRE investors may face when dealing with environmental issues. Learn how to mitigate against such issues in the following sections, and discover how an experienced real estate attorney can help protect your interests in your next CRE development project.

Common Environmental Concerns in CRE Development

Environmental concerns in CRE development projects can include soil and water contaminants, building contaminants, and noxious gas or vapor contaminants. Mold, lead, asbestos, and radon are some of the most commonly seen contaminants in real estate. Contamination may originate either onsite (from the activities of builders and previous owners) or off-site (contaminants that have leeched or been brought onto the work site).

Due Diligence and Environmental Issues

By performing due diligence, CRE project developers can ensure that environmental concerns are detected and addressed before a developer become legally liable for the property. However, one must keep in mind that environmental assessments in CRE projects do not address all environmental concerns. Instead, these assessments focus primarily on the release of toxic contaminants into the environment. Developers can obtain more protection against litigation and potential financial loss in a CRE project by knowing what to look for and where to ask for help.

Failure to Diagnose Environmental Problems

While it is preferable if a CRE developer or investor learns of contaminants prior to the completion of a transaction, all may not be lost if the deal has gone through and contaminants have been found. Individuals can create a detailed plan of action with help from environmental experts, land surveyors, and their attorney. The benefit to this is a more organized removal of contaminants, which can decrease the risk of litigation, personal injury, and costly project delays.

Contact Our Naperville Real Estate Development Lawyers

Whether you are looking at a possible commercial real estate development project and need assistance with due diligence, or have discovered contaminants on your recently purchased process, Lindell & Tessitore, P.C. can help. No matter what the situation, our seasoned Naperville real estate development lawyers strive for the outcome that protects your financial interests. Get the assistance and experience that you deserve. Schedule a personalized consultation by calling 630-778-3818 today.

Source:

https://www.researchgate.net/publication/280976419_Effects_of_Asbestos_on_Commercial_Real_Estate_A_Survey_of_MAI_Appraisers

https://www.epa.gov/lead/real-estate-disclosure#propertyml

http://www.ct.gov/dph/lib/dph/environmental_health/eoha/pdf/moldguidance_insurance.pdf

 

 

How Might the President’s Immigration Plan Affect the Commercial Real Estate Market?

Illinois commercial real estate lawyersAs the political environment in America heats up, and individuals begin to consider how the proposed government changes may impact their personal lives, it becomes more clear that everyone has a reason to be concerned. For those in the commercial real estate (CRE) market, the major concern is President’s proposed immigration party. Learn more about why the two are connected and discover how an experienced real estate lawyer can help you mitigate against any possible problems in your next commercial project.

Proposed Immigration Plan Could Impact CRE Market

Last month, President Trump announced that the number of immigrants allowed into the United States would decrease drastically over the next decade – to about half. Unfortunately, such a plan could negatively affect the CRE market is several ways. First, it could hurt the labor market. That, in turn, could impact the housing market. Secondly, the budding area of Chicago and its surrounding suburbs may be in trouble if the President’s legislation passes. Families may opt for another place to live. Businesses may leave. Worst of all, Illinois – a state that has been struggling tremendously with budgets and fiscal decisions – may never fully recover.

Protecting Your Financial Investment in Uncertain Times

Although individuals could simply move forward with their real estate transactions, despite the president’s proposed immigration cuts, doing so could be dangerous. For example, if an investor fails to consider the potential decline in new residents to a subdivision, they could struggle to sell their developed property, or they may lose money on it. Thankfully, it is possible to mitigate against the possible damage and risks of economic declines caused by politics and other factors.

First, land developers and real estate investors are encouraged to practice their due diligence before ever purchasing a property. The assistance of an attorney – before, during, and after this process – can help ensure that all factors have been considered. An attorney can also negotiate better deals and help you plan for the unexpected. Lastly, a lawyer can give you the time and energy you need to focus on the project at hand, which can improve the overall outcome.

Contact Our Naperville Real Estate Lawyers

Although it might be easy to look at the President’s proposed changes with disdain, the truth is that the real estate market is constantly changing and evolving. Lindell & Tessitore, P.C. can help you stay ahead of the curve. Dedicated and experienced, our Naperville real estate lawyers will do everything possible to help you make the right choices and decisions. Schedule a personalized consultation to get started. Call 630-778-3818 today.

Source:

http://www.nreionline.com/finance-investment/three-ways-trump-s-immigration-plan-could-affect-cre-industry

Five Things to Consider Before Purchasing That Investment Property

Naperville real estate lawyersThe real estate investment industry can be lucrative for the financially savvy, but it can also ruin investors that refuse to do their homework. Furthermore, there are several potential pitfalls that one must avoid when first entering the industry. Learn how to avoid them, and discover how an experienced real estate lawyer can assist with the transaction on your next investment home purchase.

Condition of the Property

While some investment properties may have little to no damage, others may have serious issues. These properties, which are often referred to as distressed properties, can give you more return on your investment (ROI), but only if you are realistic about the time and money it will take to make the necessary repairs. It is also critical that you consider what repairs must be made before anyone moves in since you will not be collecting rent at that time.

Location, Location, Location

The location of a property is crucial to its long-term ROI. Homes located in a declining or stressed area may be less likely to rent (unless you are willing to work with persons who have less than perfect credit and limited funds to improve a community) at a rate that offers a return. However, up and coming areas may cost you more upfront. In short, it is important that you take the time to consider all the pros and cons of an area before making a purchase.

Does the Property Adhere to the 1 Percent Rule?

There is a hard and fast rule in the investment industry, and that is that homes must adhere to the 1 percent rule. Essentially, it means that a property must be able to pull in one percent of its total cost each month. So, for example, if you purchase a home for $100,000, you need to be able to rent it out for at least $1,000 per month. If the home cannot pull that much in, then it may be best to walk away and find a different property.

Who Will Manage the Property?

Being an investor does not automatically make you an exceptional landlord, and being an exceptional landlord does not necessarily make you a smart investor. Instead, these aspects of the business are often separated; the investor invests and owns the property, and a property management company may handle the day-to-day landlord duties, such as late-night phone calls over plumbing issues. While you can manage the property yourself, it is important to consider if you are willing to do so. Investors are also encouraged to consider whether self-management may hinder their ability to expand their portfolio.

Taxes, Insurance, and Unexpected Expenses

The expenses of an investment property go well beyond repairs, maintenance, closing costs, appraisal fees, and attorney fees. There are also taxes, insurance, and other unexpected expenses that may crop up along the way. Investors are encouraged to consider these costs carefully and to ensure they have a budget and additional money set aside for any additional expenses that cannot be reasonably planned for in advance.

Contact Our Naperville Real Estate Attorneys

At Lindell & Tessitore, P.C., we understand the importance of a smart investment. Dedicated and experienced, our Naperville real estate lawyers can assist you through the entire transaction process, from start to finish. Skilled in handling even the most complex of real estate transactions, we can protect your financial future and your investment portfolio. Schedule your personalized consultation with us to get started. Call 630-778-3818 today.

Source:

https://www.forbes.com/sites/forbesrealestatecouncil/2017/09/11/seven-things-to-consider-when-buying-an-investment-rental-property/#111087c66dad