Seder & Chandler, LLP
Worcester 508-471-3018
Westborough 508-709-0024

More issues impacting commercial real estate transactions

Although it may be easy to understand the desire to preserve historical structures, disagreements can arise in their classification. In the context of land use and zoning, such efforts may impose a height restriction on skyscrapers or other commercial development projects. 

Yet zoning is but one potential issue facing commercial developers. Some commentators question whether the historically low interest rates set by the Federal Reserve may be coming to an end. If that happens, it may be harder for commercial developers to attract investors and make property investment sales. 

Higher interest rates could also be problematic to developers whose commercial mortgage loans will be reaching maturity in the next few years. If interest rates rise too quickly, borrowers may have to resort to their own equity to cover the gap. Hopefully, most will be able to refinance.

Even if interest rates do rise, there may be alternative strategies to attracting real estate investors. For example, real estate crowdfunding allows investors to buy commercial properties through online marketplaces, but a real estate attorney might caution that such sites are generally not subject to the regulations promulgated by the U.S. Securities and Exchange Commission. As a result, a real estate attorney's input may be more important than ever. 

Other approaches include the securitization of commercial properties and real estate investment trusts. Some REITs are registered with the SEC and publicly traded, but others may be non-traded REITs. The risks of each may differ. You can learn more about the types of legal issues that can surface during commercial transactions by visiting our firm's Worcester real estate attorneys page. 

No Comments

Leave a comment
Comment Information
Get Legal Help Now

Contact Us Today To Learn More

Bold labels are required.

Contact Information

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.


Privacy Policy

Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-471-3018
Worcester Law Office

Westborough Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-709-0024
Westborough Law Office