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Are new business growth models impacting commercial real estate?

According to a recent report, the market for commercial real estate is improving across the country. Specifically, many regions are reporting a building boom. In Boston, specifically, office rent growth is picking up. One commentator went so far as to describe the region's office leasing market as the strongest it's been in 50 years. Although not everyone may share that extremely favorable opinion, development does seem to be on the rise again.

Commercial real estate can take several forms, including office leasing, condo construction, nonresidential construction, and industrial property purchases or sales. At the same time, other business models are conspicuously avoiding the acquisition of traditional assets, such as office space. Take the examples of Uber or Airbnb, both of which have grown through Internet marketing and by utilizing an available pool of drivers or homeowners who are interested in offering their services or a short-term rental of their property.

Even if the traditional business model is changing, there is still a demand for commercial property. That, in turns, means the potential for disputes arising from business operations. Our law office has helped commercial real estate clients for many years, in matters of all types and complexity. Our attorneys can bring a seasoned eye to many issues, offering counsel even as to lease terms, negotiation, documentation or renewal. From commercial property managers to investment companies and contractors, our counseling is comprehensive.

In addition, our real estate practice often touches on business aspects, such as helping developers stay on track and within their budget. Delays in construction performance or financing can be costly, but with the help of an attorney, a cost-effective outcome may be achievable. 

Source: Business Insider, "This is what a good economy looks like," Shane Ferro, July 16, 2015

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