Experienced Kansas City Construction Law Firm
Call Our Team Today
1-800-523-5786

Construction & Commercial Law Blog

Some commercial real estate investors considering selling

Ccommercial real estate can be a great way to develop a Missouri investor's portfolio and continue to bring in consistent income. As job growth continues on an upswing along with the stock market, the value of commercial properties can continue to grow as can the income associated with them. However, despite the positive atmosphere associated with commercial real estate, sales are also on the rise among investors.

In the third quarter of 2017, transaction volume grew by 3.2 percent from the previous one. This may bring to mind a question about why some investors are selling despite a growing economy and tax reforms that could benefit them. Under new tax laws, real estate investors do not have limits imposed on their deductions for interest, unlike other businesses. The depreciation time has been significantly reduced for commercial properties as well, from 39 years to 25 years.

More taking twofold approach in property investment

Investors in Missouri know that managing risk through diversification is a solid way to build wealth. A new trend has seen individual investors putting money into multifamily buildings and commercial property, as large investment firms have long done. This move allows these smaller investors to better ride out volatility found in the more common individual vehicles of stocks and bonds while simultaneously diversifying their portfolios. Commercial real estate remains an important component of many investment plans, and now rental properties taking advantage of zoning laws for multifamily land use have grown in popularity for individual investors.

Americans now rent their homes in greater numbers than at any time since the 1960s, according to new research by the Pew Research Center. For many, renting makes more financial sense, part of which comes from fallout after the 2008 recession plunging owners in traditional asset-based lending scenarios underwater and causing others to rethink the "American dream" of homeownership. No yard work, no property taxes, no long-term commitment -- these and other advantages are often promised by condominium developers, but they are part and parcel of renting a home.

Projected commercial real estate trends in 2018

Real estate investors in Kansas City, Missouri, may be able to expect positive growth in the upcoming year. Across the board, real estate markets are more stable than they were a few years ago. Investors may be concerned about how changing trends could affect real estate prices in the near future.

Demand for commercial space is expected to increase based on projected growth in the e-commerce market. The types of commercial space that are most in demand are expected to change. Warehouses and shipping fulfillment commercial spaces are expected to become increasingly desirable. Malls are expected to change their stores from an average mix of 70 percent retail and 30 percent entertainment centers and increase display centers for products that are expected to be purchased online.

Apple accused of slowing older iPhones to boost sales

Missouri residents may be aware that recent tests performed by a Geekbench developer revealed that updating the iOS operating system on older iPhones hindered the performance of the devices considerably. Apple subsequently admitted that it was slowing older models to extend battery life, but critics of the Cupertino-based technology giant believe the real motive for the throttling was higher sales. Litigation is often the end result when companies with large cash reserves are accused of acting improperly, and Apple now faces at least nine class action lawsuits.

A lawsuit filed in Apple's home state of California seeks $999 billion in damages for unfair competition and fraud through concealment. The smartphone manufacturer took action to avoid a public relations disaster by publishing a letter of apology to its customers on Dec. 28. In the letter, the company denies the allegations leveled against it and maintains that any decisions regarding the performance of older models were made with users in mind.

Commercial Lean Construction and the Environment

Lean construction is considered to be a combination of operational research and practical development utilized in the design and construction of commercial and other types of construction. The lean construction process is designed to provide a system for all aspects of a construction process, from design to construction to post-construction matters.

Financial techology and commercial developers

In Missouri, commercial real estate developers understand the complicated process that often happens when they try to secure funding for their planned developments. Traditional commercial real estate lenders may go through an investigative process that can take months in order to make their decisions. If they decide to deny the applications, then the developers must find new lenders and go through the process again.

The lengthy process that is often involved with securing capital for developments may mean that it can take many months or years before the projects are able to get off the ground. Over the last decade, however, the advancement of technology has started to transform the commercial real estate industry. There are new types of alternative lending sources and financial technology that have greatly sped up the approval process.

The Rise of Lean Construction Concepts and Practices in the 21st Century

Traditional construction concepts and practices have resulted in many projects ending up off the rails. By that it is meant that many residential, commercial, and industrial construction projects end up being completed beyond the contractual deadline and with tremendous cost overruns.

State Farm could be liable in accident case

Missouri residents may understand that businesses are looking to save money whenever possible. However, they may also understand that saving money today may ultimately result in paying more in the future. John Eagle Collision center was reportedly pressured by State Farm to use glue when repairing a 2010 Honda Fit despite the repair manual saying that welds were required. By using glue instead of welds, the overall repair work cost $3,000 less to complete.

State Farm could be liable for damages if it can be proven that it urged the shop to disregard the manufacturer's recommendations. The couple who were in the car when it was hit head-on in December 2013 say that the roof repair was not part of the vehicle's history when it was purchased. State Farm faces allegations of negligence, deceptive trade practices and breach of contract in a federal lawsuit that was filed in October 2017.

Why reviewing the general conditions of a contract is important

It is common for businesses to sign contracts in Missouri without paying much attention to the general conditions that are contained in the fine print. It is important for businesses to take the time to review the general conditions that are contained in the contracts before they sign them. There are several important provisions that may be contained in the general conditions and that might lead to disputes and problems.

The provisions for delays that are included in the general conditions of the contracts are important. It is important that subcontractors and contractors make certain that they will be able to secure extensions if they need them. They should also avoid signing contracts that state that they will receive no damages for delays that happen.

Architects could be accountable for construction defects

When a problem emerges during or after a construction project in Missouri, the owner, contractor and architect often point fingers at each other when liability needs to be determined. Architects include language in their contracts meant to protect them from liability in the event of construction problems. However, courts tend to scrutinize these terms, and they do not necessarily let architects avoid responsibility.

Typical contracts seek to protect architects from the failure of contractors to follow architectural specifications and other proper building methods and procedures. However, some agreements specify that an architect will regularly inspect construction activities. Some contracts even include an obligation that an architect should alert an owner to construction problems. When this provision is present, an architect has a much higher chance of being held at least partially accountable for building defects, especially if the errors would have been easy to spot during an inspection.

Our condo association was faced with monumental construction issues thanks to the original developer of our complex. We were cash poor and in no position to get legal representation without a contingency fee arrangement. Luckily for us, Scott Long and Burke Robinson were willing to take us on as clients. Their work ethic, professionalism and knowledge of condominium construction served our association very well. Any association would be well served in hiring these gentlemen to represent them.

Board of Directors - Plaza Gardens on the Lake Condominium Owners’ Association Lake of the Ozarks, MO

Read More Testimonials

Let Us Help You

Contact our Kansas City Construction Law Firm by calling 1-800-523-5786 or by completing this contact form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy