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Recent Blog Posts
Landlords Need to Heed Illinois Lead Laws
Lead can have a devastating impact on the mental and physical development of children. Sadly, the state of Illinois has one of the highest rates of lead poisoning in the nation. In fact, Cook County alone had more than 4,500 children who tested positive for lead poisoning last year. Some of these cases may have been the result of a lack of disclosure. This is allegedly the situation for one landlord who is now facing litigation.
Illinois Landlord Faces Litigation
In May of 2015, news reporters covered a story about two young children who had suffered from lead poisoning. Investigations from the Illinois Attorney General revealed that the lead had allegedly come from their apartment home. Their landlord had reportedly failed to take appropriate action, as required by the Cook County Public Health Department. Because of that, the Attorney General is filing suit against the landlord. This could ultimately result in a temporary closure of the property and hefty fines for any failure to comply with the stipulations for reopening the property.
Combatting the “Expectations Gap” in Commercial Real Estate
Most everyone knows what it feels like to plan something and set expectations on the outcome, only to encounter an obstacle along the way. Almost immediately, the bottleneck increases stress levels - because, as everyone knows, complications lead to delays and less than optimal results.
In the commercial real estate (CRE) industry, the space in which these losses occur in are known as “expectations gaps.” For the commercial investor and their team, the consequences of a gap can be dire, resulting in lengthy delays and lost income. Learn more about what causes these gaps, and how your firm can overcome them, in the following sections.
CRE Lawyers and CRE Investors - Results vs Expectations
Real estate attorneys are often seen as the “bad guy” in a real estate deal - the reason that bottlenecks occur. This is not the case, however.
CBD Industry Offers New and Exciting Opportunities for Mall Owners
With widespread mall closures for retailers like Nordstrom, JC Penny, and Macy's, commercial real estate owners are scrambling to fill space. Two major mall franchises have announced plans to add CBD shops to their list of retailers. Learn more about this interesting development in the commercial real estate (CRE) industry, and how it could impact your bottom line.
Mall Franchises Partner with Major CBD Retailer
Two mall franchises, Simon Property Group and Brookfield Properties, recently announced their plans to partner with the major CBD retailer, Green Growth Brands. More than 200 CBD shops will be opened in malls across the country over the next year. With a strong growth history and high-quality products, the CBD company is expected to flourish inside of malls.
Specifically, Green Growth Brands will be featuring its health and beauty stores inside of malls. They own two specific (but different) brands - one focused on soaps and shampoos, the other on the empowerment and wellness of women. The opening of CBD flower shops is also expected in some locations.
Getting Started in CRE Investment - Which Commercial Real Estate Sector Should You Choose?
If you have toyed with the idea of commercial real estate investing, now is the time to take the plunge! Despite the previous concerns over an economic downturn, the market is expected to continue its growth. In fact, investors are likely to see some of the biggest gains in history over the next several years. Of course, that begs to question, where do you start? Also, what sector is most suited for a new investor like yourself, and how can you give yourself the best chance at success? Continue reading to learn the answers to these questions.
Examining the Different CRE Sectors
Commercial real estate is divided into categories known as sectors. Each has its own set of challenges, ROI opportunity, and nuances.
The Office/Occupier Sector: Deals with office space. As an investor, you would be working with corporations, medium-scale businesses, office shares, and the like. Economists expect office-use jobs to see their 10th consecutive year of growth, with a projected 1.6 percent rise in the upcoming year. This data suggests that investors will see a healthy return in the upcoming year.
How Can Zoning Affect an Illinois Renovation or Redevelopment?
In the business of commercial real estate, it can often be beneficial to purchase a property that has already been developed, rather than starting a new development project from scratch. Perhaps a developed property is located in the perfect place for your purposes, and you may even find that you can adapt existing structures to your needs. However, chances are that you will need to make some changes, either through a renovation or a complete redevelopment, and if so, you should be aware of zoning regulations that may impact your project.
Zoning Regulations in an Illinois Commercial Real Estate Renovation
You may find that you can adapt a new property to meet your needs by renovating structures that have already been built. A renovation may help you save time that you would need to spend on demolition, construction, and rezoning, but in most cases, you will still need to pay attention to zoning regulations in the local municipality that affect the development. For example, you may need to ensure that your renovation complies with local health, safety, and energy efficiency standards. You will also likely need to ensure that the property is authorized for use as the kind of business that will be operated there.
Due Diligence Facts Every CRE Investor Should Know
Due diligence is a critical step in the acquisition of a property, especially for those dealing in commercial real estate. Done effectively, the process can protect you from lengthy project delays, zoning issues, and other negative consequences. In contrast, failures in your due diligence process may lead to extreme financial loss and an overall poor return on investment. Learn how to avoid mistakes and oversights in your due diligence with these crucial facts.
You Need to Spend Time at the Property
Far too often, investors rely on the “experts” to handle the due diligence process. They hire an inspector but do not attend the inspection, contact someone to value the property but are not present during the valuation process, and rely on reports to tell them whether the building is up to code. Sadly, this is a massive mistake.
Spending time at your property not only allows you to learn about it, it ensures you fully understand any potential issues. Rather than simply reading a report, you can talk to the fire martial or inspector to get an in-depth understanding of the issues (and the potential cost to fix). Simply being in the space can help you determine whether your goals and intent for it are realistic. So, if there is even just one thing that you change about how you conduct your due diligence, let it be a massive increase in the amount of time you spend at your properties.
7 Steps to Help You Break Into the Commercial Real Estate Sector
Savvy investors know the best protection against extreme financial loss is a diverse investment portfolio. Yet, many overlook the commercial real estate (CRE) sector. Perhaps it is because they fear the large, upfront investment, big risk, and long-term return on their investment. More likely, however, an investor may hesitate or even avoid the CRE market because they do not fully understand the benefits or the necessary steps for breaking in to this type of market.
Why Commercial Real Estate?
The first issue to address is the “why” behind commercial real estate. Certainly, there are other types of investments with lower risks. Yet, it is the high risk and large investment amount that make CRE properties so appealing. They offer a steady and stable return. Real estate is also considered a tangible asset, which investors can use as collateral on other investments.
5 Responsibilities of a Commercial Real Estate Landlord
While it is true that you can boost your income and perhaps even build a nest egg with commercial real estate (CRE) investing, those who are not equipped to handle the process risk significant financial loss. First, there is the risk of a failed return on investment - an issue that can often be mitigated using seasoned legal assistance during each step of the transaction process. Then there is the chance that you may be sued if you fail to meet your legal obligations as a landlord. What are these obligations, and how can an attorney help you meet them? Continue reading to learn more.
1. CRE Landlords Are Required to Adhere to All Local and Federal Laws
All landlords are required to follow certain local and federal laws. Commercial landlords are no exception. You cannot discriminate based upon certain criteria (race, religion, etc.). Furthermore, you must adhere to all building codes and zoning laws. Failure to meet any one of these obligations can result in serious consequences, including (but not limited to) legal recourse.
CRE Development Basics: Building a Neighborhood That People Want to Live In
People measure real estate success in different ways. For some, it is their bottom line. Others only feel they are successful when they meet a certain investment goal (i.e. closing a specific number of deals in a year). Still, there are some who set their sites on sustainable, long-term wealth.
Building a Neighborhood - How Positive Community Impact Improves Investor Wealth
While there are those who fail to see the correlation between community development and long-term wealth, data shows that small-scale developers tend to build a stronger, more stable stream of income when they become intimately involved with the community in which they are developing. That is because they take interest in what the community wants, rather than simply relying on what is “trending,” which can be extremely important in certain parts of a city.
Which Type of Commercial Lease Is Right For My Business?
Whether you are the owner of a commercial real estate property, or you are looking to rent a space for your business, reaching an agreement on a commercial lease is a crucial part of your operation. There are a variety of lease structures available depending on the property's use and the preferences of both the landlord and tenant. The complexities of these different kinds of commercial leases can be challenging to interpret, but an experienced real estate attorney can help you determine the best options and negotiate a lease that addresses your needs.
Types of Commercial Leases in Illinois
Commercial leases vary based on the rights, responsibilities, and obligations of both the landlord and the tenant. Some of the most common types of commercial leases include:
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