Commercial Real Estate Laws: Predictions and Reflections
Whether you are an investor, a commercial real estate developer, or a business owner, you need to know about the laws that govern commercial real estate in the United States. These laws are complex and constantly changing, so it’s important to stay up-to-date on the latest predictions and reflections.
In this blog, we will discuss some of the most important commercial real estate laws in the US, including personal property and real property, asset control, complex laws, common law, and rights and remedies. We will also provide our predictions for the future of these laws and how they will impact the commercial real estate industry.
Important commercial real estate laws in the United States
There have been many changes to commercial real estate laws in the United States over the years. Some of the key changes include:
The Tax Cuts and Jobs Act of 2017 made major changes to how commercial real estate is taxed, including limiting interest expense deductions and reducing corporate tax rates.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 introduced new rules for the commercial real estate sector, including the need for commercial mortgage-backed securities to be registered and marketed through a clearing agency.
The Americans with Impairments Act of 1990 mandates accessibility for people with disabilities in newly constructed and refurbished commercial premises.
The 1968 Fair Housing Act forbids discrimination in the purchase, leasing, and financing of commercial real estate.
The Environmental Protection Act of 1970, mandates that owners of commercial property abide by several federal laws governing the environment, including rules regarding air and water pollution, hazardous waste, and endangered animals.
Local or state governments may have their own rules, but these laws typically undergo revisions—some quite frequently—to keep up with shifting consumer demands.
What are some predictions for the future of commercial real estate laws?
It can be difficult to predict exactly how commercial real estate laws will change in the future, but there are a few trends and potential changes that experts have highlighted:
Increased energy efficiency regulations: As concerns about climate change continue to rise, there may be more pressure on commercial buildings to use renewable energy sources and to be more energy-efficient. This can result in new rules or financial incentives for property owners to make improvements.
Greater zoning flexibility: Due to shifting demographics and the popularity of remote work, classic office parks and suburban retail malls may give way to more mixed-use urban developments. This might result in more adaptable zoning regulations that permit a wider range of uses in a single location.
Increased use of technology: The commercial real estate sector is already being transformed by technology in numerous ways, including the use of blockchain for transactions and virtual reality for property tours. In the future, it is anticipated to play a bigger role, contributing to the automation of paperwork, record keeping, and more precise property evaluation.
These are some trends and predictions, but laws and regulations on commercial real estate can vary depending on the country, state, or municipality. So these predictions may not hold in every market and region.
What challenges does the commercial real estate industry face?
The commercial real estate industry in the United States faces some challenges, including:
Economic Uncertainty: The situation of the economy as a whole has a significant impact on the commercial real estate market. Economic turbulence or downturns may result in a decline in the market for commercial real estate and make it more challenging for developers and investors to obtain finance.
Interest rate changes: Rising interest rates can make it more expensive for property owners to borrow money, which can lead to a decrease in property values and make it harder for buyers to obtain financing.
Overdevelopment: In some areas, there may be an excess of commercial real estate development, which can lead to oversupply and a drop in property values.
Political instability: Uncertainty in politics can affect those who build, finance, and own commercial real estate. For instance, modifications to tax legislation, zoning rules, and other governmental policies may have a significant effect on the sector.
Environmental and energy regulations: As environmental and energy rules become more stringent, developers may be forced to spend more money to comply, which can be a significant issue.
Environmental and energy regulations: As environmental and energy rules become more stringent, developers may be forced to spend more money to comply, which can be a significant issue.
These are a few of the major challenges faced by the commercial real estate industry, but there may be other factors that are specific to certain regions, sectors, or types of properties.
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