The economy appears to be in somewhat of a cooling-off phase in the United States, including in Massachusetts. However, commercial real estate may still be a viable area in which to invest — specifically, vacant properties. Here are a few situations that create vacancies in the real estate market.
First, vacancies may crop up when businesses are sold. This is because, in many situations, businesses are sold as part of mergers and acquisitions, where buyers and sellers tend to be in the exact same industry. Once this type of sale has been completed, there is excess building capacity, so one of the business buildings ends up becoming vacant.
Real estate vacancies are also created when companies are able to move to smaller spaces thanks to tapping into the power of automation, as well as using third-party logistics experts. Using higher racks and lift trucks can also help businesses to operate in smaller areas. This ultimately helps businesses to save costs since they can use facilities with cheaper rent, rather than holding onto a bigger property that is more costly to keep up. Vacancies may also form if companies are attracted to other states via relocation incentives, abundant labor and cheaper taxes there.
When investors come across vacant commercial real estate properties that they are interested in purchasing, they may understandably be unsure about how to go about these types of purchases. However, an attorney in Massachusetts can provide investors with the guidance they need to navigate the legal aspects of these deals. The attorney’s main goal is to make sure that the client’s rights and financial best interests are protected during even the most complicated real estate transactions in the Bay State.