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Showing 7 posts in Commercial Real Estate.
How Does Hensley v. Gadd Affect Your Kentucky Short-Term Rental Business?
In Hensley v. Gadd, 560 S.W.3d 516 (2018), the Kentucky Supreme Court found that use of real estate as a short-term rental through a platform such as Airbnb or VRBO is “commercial” and not “residential” in nature and barred the property owner’s short-term rental business. The case therefore has important implications for real estate professionals of all stripes – including real estate brokers, real estate agents, investors, and property managers – with any short-term rental business in Kentucky. More >
Gross Lease or Triple Net Lease? What You Need to Know
When leasing a property for commercial use, there are a variety of lease types from which to choose. The two most common lease types are the gross lease and the triple net lease—but how do you know which is right for your situation? More >
Net Lease vs. Gross Lease: Which is right for me?
In the sale of a commercial property, typically an entire interest in the property is sold for a single price. However, there is no “one-size-fits-all” approach to commercial leases. The difference between a gross lease and a net lease, for instance, can make all the difference. The different types of net lease can add even more confusion to the mix, leading to considerations such as gross lease vs triple net, rather than merely net vs gross lease. For the sake of simplicity, this post will focus on the gross lease and triple net lease, as these are the two most common forms of commercial lease. More >
The Basics of Commercial Real Estate Transactions: Important Contract Contingencies
Prior posts have discussed initial considerations in the purchase of commercial real estate and conducting due diligence prior to closing the deal. Today’s focus will now turn to contingencies often found in commercial real estate contracts. More >
The Basics of Commercial Real Estate Transactions: Due Diligence
The most enduring maxim of any transaction is “caveat emptor,” therefore a key element of any commercial real estate transaction is due diligence on the part of the purchaser. A thorough investigation into the fundamentals of the property, the seller, the financing and the deal itself is the most crucial form of protection a purchaser has. Such an investigation exists to prevent surprises that might arise post-transaction. This post will briefly cover some essential elements of due diligence in the commercial real estate transaction. More >
The Consequences of Walking Away: Breach of Contract in Commercial Real Estate
The temptation happens often: the deal is done, the ink is dry, the contract is finalized…then someone gets cold feet. Buyers don’t want to buy, sellers don’t want to sell, money gets tight, titles can’t be delivered, etc. What makes breach of commercial real estate contracts unique as opposed to most non-real estate contracts is that every single property is unique. No two properties can share the same physical location, but most also won’t share the same size, improvements, buildings, access, resources...the list is endless. It’s not as though the buyer can just buy the same property from another seller, and the seller who loses a buyer also loses expected capital. When one party breaches its duties in a commercial real estate contract, it’s important for the non-breaching party to understand what remedies are available. We’ll explore the most common remedies and what provisions should be in commercial real estate contracts to mitigate the effects of breach. More >
Commercial Real Estate Sales: Initial Considerations in the Purchase of Commercial Real Estate
The decision to purchase, lease, or sell commercial real estate is fraught with multiple challenges for both buyers and sellers. This series of posts will provide a basic understanding of the various aspects of transactions involving commercial real estate. This post will focus on initial considerations for buyers in purchasing commercial real estate. More >
