Commercial Real Estate Development

Commercial real estate development is an industry process encompassing diverse activities ranging from the redevelopment and renovation of existing commercial buildings to the acquisition of vacant land and the resale of such developed land to third parties. Developing real estate entails financing, acquiring land, improving the site, developing the commercial space, leasing or managing the commercial real estate, determining the kind of commercial real estate development needed, determining the nature of the tenants to be targeted for the commercial real estate development and finally negotiating the terms and conditions of the transaction. Negotiation of the terms and conditions of a commercial real estate development deal includes such issues as terms of the lease of the commercial space, the minimum rent amount, the term of the lease, whether there are any preliminary charges before the signing of the contract, what happens in the event that the developer defaults on the project, how the developer can resolve disputes among the tenants and what kind of commercial real estate development will be required. A successful negotiation would result in the satisfactory conclusion of the deal.