According to Urbanland, the magazine of the Urban Land Institute, commercial shopping centers might struggle in the next year as more stores move toward online shopping instead of a physical presence. That said, commercial real estate is always a good investment, especially as the urbanization trend will most likely continue.
Shopping centers are strong projects, because people want services and shopping in one location. These endeavors can prove very profitable if investors handle them correctly.
The first step in making sure your company is going to come out in the black is confirming the construction contract does what you want it to. Having an attorney assist you in creating contracts and negotiating the details can help you stay out of court later. You need someone on your side to watch out for your interests.
If you are considering entering into a contract with a construction contractor to build a shopping center, do not make these common mistakes:
- Creating an insufficient scope of work in the contract. The more detailed information you give the contractor about your objectives and concerns, the less you have to argue over later.
- Failing to include a retention to ensure the contractor is attentive to the last-minute items of the job.
- Not including attorney’s fees clauses in the agreement forms you sign.
- Forgetting to include the lender in the process. You may have to renegotiate a contract because the lender has certain requirements.
This list only touches on the minimum items you need to consider when signing on with a contractor to build a shopping center. There are many aspects of the process which may impact the construction stage.
Your business attorney can help you resolve problems efficiently to find a solution which lets you get the project completed on time. Managing costs of construction with your attorney will help your company be more profitable, because you will head off potential issues that could end up in court.