Some companies in Florida own the real estate they do business on. Other companies prefer to rent their premises. This can be very lucrative for the landlord, particularly when the real estate can be portioned out for use by multiple commercial tenants. However, just like real estate in general, the commercial real estate market fluctuates and buildings are sometimes worth more than at other times. Recently the market has been fairly hot, so there have been a number of sales as owners are trying to make the most on their investments.
In June there were a number of significant commercial real estate transactions. We previously wrote a post about one of the sales, but now the sale price is known. It has now been revealed that the sale price for the 1111 Brickell Avenue building was $248.5 million. Another office park was purchased for $34.75 million. Another office building sold for $23.7 million while two others sold for $13.5 million and $13 million. These new owners will now become the new landlords for the many different tenants in the respective buildings.
For the time being these new owners will hope to make money by keeping tenants in the offices and collecting rent from them. However, like any other business there are risks involved in owning these buildings, and tenants come and go. So, there are not always guarantees. Also, they have now made significant investments in these buildings and will hope to make money later when they decide it is time to sell. These commercial real estate transactions are purely business decisions, and the only concern is the income they can generate for the owners.
As one can see from the sales in just June, there are many commercial real estate transactions in Florida every year. Many of these involve tens of millions of dollars and are major investments for the parties involved in the sale. It is important that these are done correctly to ensure the investments are protected. Experienced attorneys understand the importance of these transactions.