New York Corporate Real Estate Lawyer
Corporate real estate is one of the most significant assets in a company’s portfolio. It requires long-term planning, investment, and corporate strategy, with lasting impacts on every aspect of the business. Companies should partner with an experienced corporate real estate lawyer from the very beginning of the process to ensure that they are optimizing tax, compliance, regulatory, and legal considerations from the outset.
How Is Corporate Real Estate Different?
Corporate real estate is a special category of commercial real estate. Corporate real estate is commercial office, retail, manufacturing, or other properties used by a business for its own operations. As an owner-occupant, the business has an integral relationship with the property.
Corporate real estate is especially critical when a company is choosing to situate and develop its company headquarters. Company headquarters are the most visible and prestigious expression of the brand, as well as serving critical business functions, and corporate real estate decisions are some of the most significant ones that founders and investors will ever make.
Should Startups Buy or Rent?
The first thing that founders, entrepreneurs, and startups need to consider is whether to buy or rent and at what stage corporate real estate becomes a good investment in the brand. Here are some of the factors to consider when determining if and when corporate real estate is right for your startup:
- Long-term costs. While leasing commercial real estate is often the best approach for a new venture, it may not be the best investment in the long term. Over time, owning corporate real estate may become more affordable than you think.
- Company assets. Commercial real estate is a stable investment that adds returns over time. Adding corporate real estate to your startup’s portfolio is an excellent way to diversify investment and add value.
- Greater control. Property owners are able to maximize their use of space in a way that tenants are not. Ownership creates new opportunities to modify and customize a space, add signage, modify access, and enhance the property in other ways that customize and optimize it for your company.
- Brand value. Having your own corporate headquarters builds enormous value for the brand. It indicates growth, stability, energy, and commitment to customers and investors alike.
The decision of when to lease and when to buy is a complex one, and founders need to consider a huge range of factors in order to know when the time is right. It is best to consult with an expert corporate real estate lawyer with entrepreneurial experience to determine the next steps for your startup.
Common Considerations in Corporate Real Estate Matters
Corporate real estate represents a significant undertaking on the part of a brand. While buying a physical location has many advantages, committing to a specific site may have drawbacks and limitations. Some of the factors to consider when determining where to locate corporate headquarters or branch offices include:
- Access to a talent pool. Growing a company relies on access to a qualified talent pool, and companies often need to compete for the best employees. When locating corporate real estate, it is important to consider whether that site has access to your future employees or whether it is competitive for talent that may need to commute or relocate. Companies can analyze local employment and education levels, along with other demographic data, to help assess a location’s impact on talent acquisition. Consider employee convenience factors like access to public transportation, affordable housing, and other benefits that improve recruitment.
- Access to trading partners. Even in today’s online, remote, connected communications environment, location matters. A company’s physical location should be easily accessible to a huge range of present and future trading partners. You may need to engage with vendors, contractors, clients, candidates, suppliers, and other business partners. You may need access to shipping routes, airports, or other transit infrastructure, or plan for more and new ways to access your work site.
- Tax implications. Naturally, where you locate your corporate headquarters has enormous tax implications on the federal, state, and local levels. While a company may be incorporated in one location and have its physical operations take place elsewhere, every business address affects tax considerations and obligations. Even a distance of a few miles may completely change the tax landscape, with different costs and rates, but also with different rebates and incentives. Furthermore, corporate tax guidelines and regulations are subject to frequent changes and amendments, with potentially huge implications for business operations. Corporate real estate investments should be carefully reviewed by qualified accountants, financial planners, and corporate tax lawyers.
- Legal and regulatory environment. Every business, every real estate investment, and every property development project is subject to various laws and regulations. Furthermore, these regulations may be highly localized, with site-specific implications. Always consult with a corporate real estate lawyer before making property decisions.
- Zoning and land use. Whether you want to build an office building or a factory, local zoning and land use guidelines should be carefully considered against present and future use.
- Many startups find value in locating their business near related and complementary industries, creating a “cluster.” The value of clusters is significant and grows as each new venture joins the area. Clusters create natural partnerships that expand the capacity of each individual business and attract both talent and investors. Clusters are also more likely to develop important tax and regulatory benefits as governments seek to foster innovative sectors of the economy and incentivize certain industries.
- Added value. One of the reasons why so many startups choose to headquarter in New York is that the city itself adds value. New York offers excellent access to world-class talent and transport, as well as access to global finance and world markets. A NYC address communicates volumes to investors, competitors, and candidates. For many startups, the prestige of a New York address represents an investment that pays off over time.
When a company is in the market for corporate real estate, these are only some of the factors to examine. Depending on the size of the business, the nature of operations, and future strategy, there are many more elements to consider. Companies need to work with trusted partners and advisors to make the best corporate real estate decisions at the right time.
When to Consult a Corporate Real Estate Lawyer
Ambitious founders who want to chart a plan for long-term growth should consult a corporate real estate lawyer early in their trajectory. An experienced corporate real estate attorney can offer advice specific to your business and your ambitions, alert you to potential pitfalls, and help develop a long-term plan for success. Naturally, it’s critical to engage a corporate real estate lawyer later in the process when it is time to establish a real estate investment and strategy.
How Can The Fridman Law Firm Help?
The Fridman Law Firm is an excellent choice to partner with for every stage of business growth. With extensive experience in corporate law, taxes, and commercial real estate, as well as first-hand experience as an entrepreneur and investor, our firm has the comprehensive expertise and understanding to support founders every step of the way. Contact us online or call 212-262-9823 to schedule a consultation.