While there is no such thing as a simple commercial real estate transaction, delays can sometimes lead to the loss of significant opportunities. It’s understanding why caution is necessary. Commercial development projects can be tremendously expensive, and mistakes can prove costly.
There is optimism concerning commercial development in Massachusetts. In a recent article, one real estate partner stated that capital is now available. There are also a significant number of commercial opportunities. The partner added: “Deals are ahead of the capital, but the capital is right at the beginning edge to flow in a meaningful way.”
Obstacles to current opportunities
One significant hurdle for developers is a lack of understanding of federal guidelines. The guidelines are complex. Also, developers must evaluate how federal guidelines fit in with state development incentives.
Most importantly, developers need to understand the risks. Understanding such risks may take time. Of note, it appears that deals are not popping up uniformly in the state. For example, certain regions in Massachusetts still are feeling the impact of a decline in manufacturing throughout New England. This means that investors will need to familiarize themselves with where the opportunities exist.
The need to work together
A successful commercial development project requires working with other professionals and members of the community. It can mean understanding the incentives that the community makes available for investors and developers.
Developers will also need to make several legal considerations before undertaking a substantial commercial development endeavor. A project requires negotiating the appropriate agreements, and putting the right sort of financing into place. There also will be zoning considerations. Developers will also need to consider federal and state tax issues. Having a knowledgeable real estate attorney on your side can help make such undertakings go more smoothly.
