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Commercial Real Estate

Commercial Tenants In Orange County Could Be Facing A 40% Rent Increase

Many businesses in Orange County choose to lease their building after weighing up the pros and cons of leasing vs buying. When people lease a property, they will need to pay a monthly amount to their landlord. There are times, however, where the monthly rent can increase, sometimes by as much as 40 percent!  Learn why their may be a commercial rent increase in orange county.

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buying

What Do You Do When Your Seller Refuses To Close?

When you make a transaction in commercial real estate, then a contract is involved. This means that the seller and the buyer have both agreed to something, which generally involves something of value. There are legalities involved in a contractual relationship as well. But what happens when a seller refuses to close?

A contract is a legally enforceable agreement between two or more parties. It may be oral or written. A contract is essentially a set of promises. Typically, each party promises to do something for the other in exchange for a benefit.

Yet, despite the fact that there is a legal obligation for both parties to fulfill their promises, it may happen that the seller suddenly decides that the deal is a no-go after all. You have the opportunity to take legal action in this case if you are the buyer. However, this is a complex arena, and a very costly one as well, so most people will simply decide to move on and find a different property. That said, there are a few other options that you may want to consider first.

Usually, a buyer and seller who want to make a deal will start by negotiating a price on the commercial real estate. They then create an agreement in which both the closing date and contingency period is set.

With a home sale contingency in place, the transaction is dependent (or contingent) upon the sale of the buyer’s home. If the buyer’s house sells by the specified date, the contract moves forward; if it doesn’t sell by the specified date, the contract is terminated.

If all of this is agreed upon, both parties sign the agreement contract, which is then delivered. Funds are put into escrow, and the transaction is ready to proceed. But, sometimes, things go wrong and a little snag appears.

In the vast majority of cases, the snag appears on the side of the buyer. When they investigate the property, for instance, they might find something they aren’t happy about. Perhaps the roof has a leak, the air conditioning system doesn’t work, the fuel tank percolates, the expenses are higher than the buyer originally assumed, the appraisal has revealed that the property is worth less than what was estimated, and so on.

Buyers have significant protection against snags like this, so long as it is uncovered during the due diligence or contingency period. What then happens is that the buyer either pulls out of the deal, requests for a discount on the purchase price, or asks the seller to fix the problem. There are lots of options available, in other words, and the reason why there is a snag is very obvious.

Of course, the buyer also has the opportunity to accept the property as is, which is rarely the case. Instead, they could come to a new agreement with the seller. Finally, they may waive the contingency, which means the money in escrow becomes non-refundable and the escrow prepares for close. While they can still cancel at this time, it would mean the buyer would lose the deposit.

Sellers, however, do not have these escape hatches. Once they agree to make a sale, they are stuck with it. Unless the buyer takes very specific actions in breach of the contract, the seller must close. Yet, some of them refuse to do so. In the majority of cases, this is because they are bluffing and they hope the broker will offer them some more money.

Rules are in place for a reason, and they exist from when the listing agreement is signed to when the keys are handed over. But commercial real estate is also a business and sellers want to make as much money as possible. They hope to come across an inexperienced buyer or broker and essentially start to play a game of poker. This is why a seller refuses to close.

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Commercial Real Estate

How To Get Your Budget Right For A Commercial Real Estate Lease

Rent is usually a substantial cost for a business. This is why it is so important that, before you sign a commercial real estate lease, you get your budget in order. Indeed, commercial real estate experts always talk about the importance of proper planning and preparation.

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Commercial Real Estate

What Happens After A Listing Agreement Is Signed?

If you own a piece of commercial real estate in Orange County, there are three things you may want to do with it. Firstly, you may want to run your own business from the property. More commonly, you may want to lease it out, so that you can earn on your investment. Lastly, you may be in a position in which you want to sell the property.

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Commercial Real Estate

Understanding The Hidden Cost Of Taking Out A Commercial Lease

Taking out a commercial lease is a huge moment, and one that you have to think carefully about. One of the reasons for that is because there are quite a few hidden costs that you may not have been aware of. It is also for this reason that you must have a team of professionals on your side when you are negotiating your lease. So what are some of the hidden costs, and how can you avoid them?

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Commercial Real Estate

Huge Boom In Orange County Office Space

New research has shown that Orange County, CA, is currently the best place to buy office property. Specifically, the commercial real estate market in San Juan Capistrano is booming faster than anywhere else. This has made the city, and Orange County as a whole, very attractive for those interested in investing in commercial real estate.

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Commercial Real Estate

Frequently Asked Questions About Commercial Real Estate

The field of commercial real estate is very interesting and important for a variety of  reasons. Naturally, business owners are interested in this type of real estate, whether for purchase or for lease. Furthermore, this field of real estate is also very interesting for property investors, including those who are part of a commercial real estate investment trust. However, it is also one that raises a lot of questions. Let’s take a look at some of the most important questions around.

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Commercial Real Estate

Big Changes In The Real Estate Professionals Market In Orange County

There have been some very interesting appointments and promotions within commercial real estate firms in Orange County over the past few weeks. Firstly, the new Southern California-Hawaii division of the CBRE Group has appointed Lewis C. Horne as their president. This means he will now focus on Orange County, the Greater Los Angeles area, Hawaii, and San Diego. One of the offices he will head is that of Newport Beach.

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Commercial Real Estate

Is Owning Commercial Real Estate Bad For Business?

The question for businesses on whether to buy or lease commercial real estate is one that seems a long way from being answered. It is a known fact that both buying and leasing have their own pros and cons, and that they tend to be most suited to different situations and business set ups. Where an investor, for instance, will always purchase commercial real estate, a startup business will almost always lease it. But what about for those in between? What is the better option for them?

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Commercial Real Estate

5 Things To Do With Your Commercial Real Estate In The First Quarter Of 2017

The year 2017, just like every year before it, has the potential to be a fantastic year, regardless of what industry you are in. If you are involved with commercial real estate, be that as an owner, investor, or lessee, there are five key things that you must do to make sure that real estate continues to work in your favor. Let’s review these five items.

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