What is involved in a Commercial Real Estate Development Structure Deal: by Hooman Nissani
Structuring a commercial real estate development deal correctly is a tricky endeavor. If you want to avoid complications down the line, you need, as much as possible, to get everything right the first time. Complications can lead to misunderstandings, loss of income and even litigation.
The following aspects of any potential commercial real estate development deal need to be fully understood if you want to obtain a successful deal:
· Obtain an understanding of the local market
· Obtain an understanding of both the local, and overall economy
· Become intimately involved with the local community
· Obtain an understanding of the local demographics
· Obtain an understanding of the local area, including schools and housing
One of the first things you need to do before venturing onwards with a commercial real estate development deal is to make yourself familiar with local zoning laws. This is crucial, as such laws will permit you to do some things but may not permit you to do everything that you want.
Some aspects of commercial real estate development that may be affected by property laws include the way that land can be landscaped around the development, the maximum height of any buildings, rules around parking and environmental issues. There are several other key factors that you may need to consider as well.
Making a mistake when it comes to local zoning laws can be disastrous. If your development breaks zoning laws then it will reduce the profitably of your project, cost thousands or even millions to make right, and may significantly damage your reputation as a commercial real estate property developer.
How to get things right when it comes to commercial real estate development and zoning laws
If you send a third party to deal with local building and planning departments, then you only have yourself to blame should things go wrong. You will be solely responsible for all aspects of the development deal, so you need to consider everything – sidewalks, drainage, curbing, landscaping, easements and even parking. You need to make sure that you have ticked every appropriate box and that the future will not hold any nasty surprises for you.
You also need to understand that while you are probably thinking about your commercial real estate development deal in the short-to-medium term, planners and the people responsible for the creation of zoning laws will be thinking in the long term, sometimes even decades ahead. You may need to adapt your thinking to a more long-term view before you carry through any deal you are trying to make.
Avoid headaches by keeping matters as simple as possible
You will not be the first person ever to secure a commercial real estate development deal in your local area. All of the steps that you need to take have been undertaken many times before and although they can seem complicated on the surface, all the parties involved will want to get things done as smoothly and as simply as possible. To this end, the planning and building department you are dealing with should be able to help you by simplifying the process as much as possible. Make sure at the very least that you speak to local planning and building professionals to learn as much as you can about the process of obtaining the necessary building permits.
For help and advice about completing real estate development deals, please fell free to contact Nissani Brothers Enterprises. We have extensive experience in dealing with all types of real estate development deals from automobile dealerships and hospitality deals to gas stations and everything in between, and we are happy to discuss anything in relationship to commercial real estate development. Reach out to us today using our online contact from.
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