The Law Office of Lynnette Ariathurai A Professional Corporation

California commercial real estate vs. residential investments

An institute of technology for real estate in another state recently noted that, in 2008, commercial property values plummeted more than they had in almost 25 years. Investors in California may agree, however, with those who say such times offer commercial real estate opportunities, if one knows what to look for in a potential deal. Many investors say that commercial property investments are typically more profitable than residential purchases.

When considering a real estate investment that involves buying or selling a business, potential buyers and/or sellers often have need of legal guidance. It is crucial that the parties understand who will be responsible for company liabilities. It is often possible for a business and commercial law attorney to help secure an agreement wherein the seller is responsible for debts that include taxes, wages (past or present) and existing contracts. 

Residential property is valued differently from commercial enterprises. Estimated income value of a commercial property coincides with physical square footage of a brick and mortar dwelling. This is not the way a private home is valued. Because such issues can be complicated, it is often beneficial to seek the assistance of an attorney experienced in negotiating various types of property investments.

California investors who wish to pursue commercial real estate deals will want to obtain clarification of applicable laws before entering any type of agreement. A wise investor always has an exit strategy, as well, in case there is a need to walk away from a potential deal. A key factor in protecting business and investment interests and accomplishing immediate and long-term investment goals often lies in acting alongside experienced legal representation.

Source:, "7 Steps To A Hot Commercial Real Estate Deal", Brian O'connell, Accessed on May 30, 2016

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