Selling any type of real estate can be a significant challenge. Selling commercial real estate can be even more challenging, especially if it is being sold as a redevelopment property. This is what real estate agents and developers told a Michigan school district that recently proposed to sell ten of its school locations. Real estate experts cited the current economic conditions as a reason it could be a difficult sale.
Some real estate investment experts believe that the current conditions of the real estate market have made potential investors wary of speculating in development projects. However, they do see some potential uses for the school buildings for non-profit organizations or housing for the elderly. The school district has locations in all areas of the city and is not sure when the buildings will be entering the market.
Along with selling the buildings, the district is also considering leasing the buildings. Other buildings could be put aside for future usage. If the district decides to develop residential spaces with the buildings, it could turn out to be an expensive venture, according to some reports. It will also be important for potential developers to take into consideration the interests of the people living in surrounding neighborhoods.
As this case in Michigan has illustrated, there are various aspects to consider when looking to market or redevelop commercial real estate. It is important that those involved in a redevelopment deal understand all of the legal ramifications of the transaction. Real estate and business law typically involves an overlay of different governmental regulations and market considerations that require careful though and planning in order to achieve established goals.
Source: MLive.com, " Real estate market likely inhospitable for buildings Grand Rapids Public Schools might sell ," Brian McVicar, Oct. 30, 2012