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Commercial Leases: Comparing Costs, Modifications, and Other Terms

posted Nov 5, 2012, 3:39 PM by Bryan Berson   [ updated Sep 13, 2014, 6:05 PM ]

Real estate (property) is an economic resource regulated principally by municipalities and states.  There is no single real estate market.  Rather, there are many markets.  Conditions may differ among them depending on local regulations and the local economy.  While some macroeconomic factors (e.g., interest rates) can affect simultaneously many or most markets, buying or renting property is a microeconomic decision. 

Tenants and buyers have unique needs, and properties have unique characteristics.  To determine whether specific properties meet a party’s needs, one must understand the property’s features, inherent risks, and intrinsic value in relation to the sales price or rent.  One must conduct due diligence to understand a property.  Among other things, one can view it, hire contractors to inspect it, and hire professionals to review relevant documents.

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