Real estate investors in Missouri and around the country are becoming increasingly interested in commercial properties like offices, stores warehouses and garages. Commercial landlords generally have more businesslike relationships with their tenants, and they rarely have to deal with minor issues or address petty grievances. Most business tenants have reliable sources of income, and they also tend to be more stable and predictable than residential renters.
Investors are also drawn to offices, stores and warehouses because their costs are often lower, their yields are generally healthier and the commercial property sector is less volatile than the residential housing market. Commercial tenants tend to sign longer leases than residential tenants, and they may also take care of some of the expenses that residential landlords are generally expected to cover. Commercial real estate can also appreciate rapidly when business tenants thrive and are reluctant to leave established locations.
Another benefit of commercial districts is that they evolve over time. In many major cities, areas that were once known as manufacturing centers or warehouse districts are now packed with offices, stores and restaurants. Commercial real estate owners and investors can take advantage of these changes by either refitting their properties or tearing them down and replacing them with more suitable structures.
While investing in commercial real estate offers many benefits, the risks can be high for those who buy properties without performing sufficient due diligence. Attorneys with experience in complex commercial real estate transactions may be able to help their clients to avoid possibly costly mistakes by checking the credentials of all of the parties involved, scrutinizing documents for vague or contradictory provisions and ensuring that any potential legal roadblocks, such as zoning or land use issues, have been addressed.
