Commercial Real Estate Development
Real Estate Law Practice Areas
Attorneys
Areas We Serve
When Do I Need a Commercial Real Estate Development Attorney?
Developing Michigan Commercial real estate can serve as a lucrative investment for real estate builders and developers. When planning a commercial real estate development, involving a commercial real estate development attorney can only help in the process. The commercial real estate developers at Hirzel Law, PLC can help with:
- Commercial Leases
- Construction Contracts
- Drafting declarations, restrictive covenants, and deed restrictions
- Drafting master deeds, condominium bylaws and purchase agreements for business condominiums, dockominiums, mixed-use condominiums, industrial use condominiums and storage condominiums.
- Financing and commercial loans
- Operating Agreements and drafting corporate documents
- Planned Development Agreements
- Review disclosure statements, escrow agreements, limited warranties, purchase agreements and performing due diligence for land purchases
- Zoning and re-zoning
Do I Need a Real Estate Attorney to Purchase Commercial Real Estate?
When purchasing commercial real estate, developers, and investors must be aware that the process can be more complex than purchasing residential real estate. Commercial real estate developers must ensure their investment is protected as a commercial real estate development is, more often than not, a substantial source of income. A commercial real estate development attorney will be familiar with important laws such as the Michigan Zoning Enabling Act, MCL 125.3101, et. seq. and the Michigan Land Division Act, MCL 560.101, et. seq.
The Michigan Zoning Enabling Act states that the local unit of government may:
“ . . . limit the inappropriate overcrowding of land and congestion of population, transportation systems, and other public facilities, to facilitate adequate and efficient provision for transportation systems, sewage disposal, water, energy, education, recreation, and other public service and facility requirements, and to promote public health, safety, and welfare.”
With the local unit of government placing limitations on how Michigan land may be developed, it is critical that commercial real estate developers are aware of any zoning ordinances that may restrict what can be done with the property. Without advice from a commercial real estate development attorney, a commercial real estate developer may potentially purchase land that is not able to be used for commercial purposes, completely seizing the development of the project. Accordingly, a Michigan commercial real estate development attorney can assist in providing due diligence for purchasing the property, preparing purchase documents, or help with re-zoning the property. A commercial real estate development attorney can save commercial real estate builders and developers valuable time and resources by ensuring the project is off to the right start and in compliance with the Michigan Zoning Enabling Act and Michigan Land Division Act. Partnering with a Hirzel Law, PLC commercial real estate development attorney allows commercial real estate builders and developers to have peace of mind when working on a project, knowing that their investment and interests are protected.
How Can a Commercial Real Estate Development Attorney Assist Me in the Construction Process?
With such an emphasis placed on the construction plans for a commercial real estate development, it is imperative that any construction contracts are prepared and reviewed by a commercial real estate development attorney. A well-written construction contract can further protect a commercial real estate developer from potential pitfalls by the contractor, subcontractors, civil engineer, and other third parties involved in the commercial real estate construction process.
However, even commercial real estate developers with well-written and prepared construction contracts may be faced with the setback of construction disputes from third parties. “Failed Construction Projects: Common Disputes Between Property Owners, Contractors and Subcontractors” further outlines the common disputes commercial real estate developers may be faced with when developing a commercial real estate project.
The commercial real estate development attorneys at Hirzel Law, PLC, can prepare, review, and negotiate current and potential contracts on behalf of Michigan commercial real estate developers. Our attorneys have experience working with commercial real estate developers throughout Michigan, mitigating and dissolving common disputes with third parties.
How Can a Commercial Real Estate Attorney Assist in Leasing My New Commercial Development?
Once a commercial real estate project is fully constructed, next comes the important decision of whether the developer should operate their business out of the developed commercial property — an uncommon but not unheard-of decision — or turn the financial obligations over to a lessee in the form of tenant improvements, which would be included in a commercial lease. Should a commercial real estate developer choose to commercially lease the property to a business or other third party, there are even further preventive legal measures a commercial real estate developer must take to protect their investment; one of which being a well-written commercial lease agreement. A commercial lease agreement outlines the terms of the lease and tenant use of property, however, there are several variances appending a commercial lease agreement. Well-written commercial lease agreements may include terms for construction and completion as well as lessee obligations for repairs. “5 Things You Need to Know About a Michigan Commercial Lease” further outlines what should be included in a well-written lease.
Another preventative measure it is advised that Michigan commercial real estate developers take is the preparation of a personal guaranty. A personal guaranty is another aspect that plays into the negotiation of a commercial lease, which further protects the financial investment of the commercial real estate developer. “What is a Personal Guaranty and Why is it Important With a Commercial Lease?” further elaborates on the importance of commercial real estate developers working with a commercial real estate development attorney to simultaneously document a personal guaranty.
If you are a builder, commercial real estate broker, developer, or successor developer, the commercial real estate development attorneys at Hirzel Law, PLC can provide you with peace of mind and help get your project off to the right start. We stand by our clients, offering quality legal representation and promptly responding to our clients’ needs. Contact Hirzel Law online or call 248-986-2921 (Farmington) or 231-486-5600 (Traverse City) or 616-319-9964 (Grand Rapids) to learn how our Michigan residential real estate development attorneys can help.