The commercial real estate market often fluctuates with the economy. As the economy is doing well, so is the commercial real estate market. The market in Houston has experienced a few set-backs in recent years, but appears to be poised for growth.
This was highlighted in a recent discussion about the development of a strip mall in the area. The developers appear to have re-imagined this rather commonplace building type. Instead of the more traditional styles that come with a strip mall, the developers have designed the buildings to reflect its neighborhood, at times with a bit of modern flair.
Will the project pay off? The investors may do well with their support of an inventive design for the strip mall. The spaces within the mall leased immediately.
Although the initial prospects are promising, it is important to note the many obstacles presented in the project. The group was working with an old building and had to complete the project within the land-planning rules and regulations of the area. A failure to properly account for these rules could have caused serious problems for the project.
One specific example involved a parking matter. Parking in the city is hard to find. In this specific case, the developer chose to reuse the existing building so the project could continue to make use of the existing head-in parking. A failure to do so could have resulted in a loss of this parking area, as this form of parking is now illegal in the city.
It is important to mitigate the issues that can arise during a commercial real estate project. An attorney experienced in Houston commercial real estate projects can help. Legal counsel can address initial planning, due diligence, financing and land use matters as well as the potential tax implications that could come with the project.