There are several important factors to consider before purchasing a commercial property. The first is if it is going to be sold subject to tenancies. Meaning, will the building be delivered vacant or with tenants attached? If the tenants are coming with the property, you have to make sure you review and understand the terms of the tenant leases. Also, you should do some environmental due diligence on your property if necessary. Certain locations, such as former gas stations or dry cleaners could have significant environmental liabilities attached to them. It’s important that you understand what can and cannot be done on your property before purchasing it. Many clients are very disappointed to find out that they can’t do what they want to do with their property. All this investigation will happen in the due diligence phase, either in the early stages of the contract or, oftentimes, before the contract is even signed.
This informational blog post was provided by Alexis Soterakis, an experienced New York Corporate Business Law Attorney.