Commercial Services
Similar to residential transactions, commercial real estate involves the transfer of property from one owner to another. In commercial real estate, however, the properties are used for business purposes and typically fall into the categories of:
Multifamily rentals, including duplexes, triplexes, quadruplexes and apartment buildings
Office space
Industrial space, such as warehouses and factories
Retail space, such as strip malls and shopping centers
Hotels
Vacant land
Special purpose, such as zoos or bowling alleys and
Mixed use, which means the building either has a combination of living and retail or office space, or has the potential to have a combination of the two.
Commercial real estate is more costly and brings with it higher risk factors than residential real estate. Because of this, it is common to see corporations as the entities that are buying or selling the property. This is as opposed to individuals (e.g. John, a seller, and Mary, a buyer,) in residential sales. Additionally, as commercial buildings are used for business purposes, it is common for the transfer of property to occur while tenants occupy the space, such as with apartment dwellings or units in a strip mall.
Because commercial transactions commonly involve multiple people, parties, or corporations, it is imperative that a comprehensive title search is completed and that all aspects of the sale are monitored by an experienced and knowledgeable escrow officer.
The commercial transaction can involve many unique requirements including leases, rent prorations or triple net leases. It is important for the escrow officer of commercial property sales to be capable of handling these complicated transactions to ensure a satisfactory conclusion.
At International City Escrow we have just that, dedicated professionals who will help you close your escrow successfully.
If you would like to learn more about commercial escrow, 1031-exchange with commercial properties, commercial tract sales, or commercial escrow with business sales, please contact us to schedule a meeting.