An increase in retailers’ online sales caused an unforeseen spike in demand for industrial real estate. As reported by The Real Deal, vacant land for use as commercial warehouse and storage space has become a desirable development property.
Developers who construct buildings designed for e-commerce distribution centers may command high prices. They may, however, also need to complete their projects quickly. According to recent research, marketers expect online sales to surge over the year 2021.
Attracting large corporations to new construction projects
The Sunshine State has experienced an influx of wealthy new residents from the Northeast and Midwest states. As noted by Business Insider, many executives also consider Florida an attractive area for relocating their corporate facilities. High state and local taxes in New York, for example, help fuel the corporate migration.
Mixed-use properties that offer retail, office and storage capabilities may attract motivated corporate buyers. With a significant number of employees working remotely, companies may prefer smaller workspaces. A building also equipped with telecommute technology and other on-site resources may reflect a practical and appealing option.
Protecting a lucrative project with a secure real estate transaction
Before entering into a real estate construction transaction, developers may need to draw up documents to shield them from liability. Buyers who require third-party financing to purchase property may face an extensive due diligence process to close a sale.
Developers may find themselves investing their own resources to create project plans, blueprints and land surveying. They may also need to anticipate the risk of a buyer’s funds not coming through. To protect against a loss, an agreement may need to include terms outlining the possibility of a real estate transaction failing.