Commercial Real Estate Representation in Cook, DuPage, and Kane Counties
Most businesses require real property to conduct their operations, while others use real property as an investment vehicle. Purchasing and selling commercial real estate in Illinois is almost always a complex endeavor, and having the support of a dependable legal professional can help a company safely navigate transactions and avoid unnecessary complications.
With 30 years of legal experience, Jim Young is a seasoned Elgin commercial real estate lawyer who is committed to serving businesses in his community. He is ready to assist companies of all sizes and industries with the purchase and sale of commercial real estate. Jim's representation is hands-on, and you will have direct access to him throughout his handling of your case, including after-hours on and on weekends. In addition to guiding you through the closing process as safely and efficiently as possible, Jim understands the intricacies of Illinois commercial real estate law and will provide the comprehensive advice you need to make informed, strategic decisions.
How Commercial Real Estate Transactions Work in Illinois
Commercial real estate transactions function similarly to consumer real estate transactions, but there are additional considerations that must be addressed when a property will be used for commercial purposes or as an investment vehicle. These elements inevitably complicate what is already an involved, high-stakes process.
While having a real estate broker or agent to assist with your commercial transaction can be advantageous, keep in mind that these parties cannot act as your legal representative. Only a licensed attorney can give you legal advice and create legal documents.
An Elgin commercial real estate attorney can help you with:
- Identifying suitable properties. Whether a business is seeking a property to invest in or is looking for a space in which to conduct its operations, a buyer will need to evaluate its goals and review the full spectrum of applicable offerings. A buyer must consider the elements most important to the business and decide what factors are non-negotiable before beginning a search. Buyers should keep in mind that it may take weeks or even months to identify one or more properties that suit their needs.
- Underwriting. This step is relevant if a business intends to use a selected property as an investment vehicle. Underwriting involves thorough research to verify the future financial viability of the property. Typically, a prospective buyer will need to make contact with the property's current owner, express interest in acquiring the property, and request extensive documentation, including bank statements and balance sheets. It is also wise to conduct independent market research to determine whether the property is likely to remain profitable. If a buyer is satisfied with the results of their inquiries, they can work with the seller to establish a purchase price and begin drafting a purchase and sale agreement.
- Due diligence. Carrying out due diligence is necessary whether a buyer intends to actively use a property for company operations or as an investment vehicle. It involves physically inspecting the property and examining other practical elements to verify its condition is consistent with the buyer's expectations. A buyer should hire an appraiser and professional inspectors to thoroughly evaluate the property. They should also test all plumbing, electrical, and HVAC to confirm they are in working order. If there are existing tenants, asking questions about ongoing issues can help reveal problems that may not be immediately obvious. Finally, the buyer should ensure the building is appropriately zoned for its intended use.
- Closing. Once the buyer and seller are satisfied with the terms of the transaction, they can proceed with the closing process. This will initially involve signing a purchase and sale agreement and setting up an escrow account, with the buyer generally making a good-faith deposit. The buyer will then need to perform a title search and resolve any defects that are discovered. Assuming all physical inspections have been completed and any known problems have been repaired or otherwise addressed, the buyer and seller can sign closing documents and complete the transaction. The buyer will need to notify any existing tenants of the change in ownership.