The plaintiff in the case is Bombardier, an aircraft manufacturing company based in Quebec. Among the defendants are Mitsubishi Aircraft and Aerospace Testing Engineering & Certification. Bombardier claims these companies recruited and hired 92 of its workers and that some of the workers sent documents that contained trade secrets to Mitsubishi prior to leaving Bombardier. The CEO of Bombardier has said he is afraid the intellectual property will be used to further the development of an aircraft that competes with Bombardier airplanes.
The trade secrets involved in the case have to do with the process of securing certification from the Federal Aviation Administration in the U.S. as well as with Transport Canada. The Mitsubishi aircraft the trade secrets would be used to develop have been delayed a number of times over the past 10 years. It is expected to be available during the year 2020. The lawsuit was filed in a federal court in the U.S.
Intellectual property is often amongst the most important assets held by a business. Diligent effort may be required to protect it and to keep trade secrets secret. A lawyer with experience in business litigation might be able to help by drafting and filing a complaint for relief or developing a system of communication to ensure a business's trade secrets qualify for protection under the law.
Source: Bloomberg, "Bombardier CEO tried to resolve trade-secret dispute with Mitsubishi before lawsuit: Documents," Julien Arsenault, October 22, 2018
]]>In 2017, venture capitalists devoted $12.6 billion to proptech, an investment amount that was three times what was invested in 2015. There is also a number of proptech firms that are developing applications that are changing the way building management is handled. All of the stakeholders in the real estate industry, including tenants, landlords and management, will be impacted in the next few years by how proptech will become a necessity.
Measurement is an important factor in what is managed. Real estate satisfaction and utilization have not been a focus of measurement in the past, and this has resulted in the poor and inefficient management of those two aspects of the real estate industry. Connectivity is a contributing factor in what gets measured, and measurement results in management.
The more proptech continues to evolve, the more the focus of using the technology will move to how to improve the office experience, which is something that will affect tenants' comfort and how tenants and landlords communicate with one another. However, in order for this to occur, it will be necessary for the industry to be open to using location-aware capabilities for commercial real estate uses.
An attorney who practices business and commercial law may assist clients with selling, leasing or purchasing commercial real estate. A lawyer may protect the rights and interests of clients while overseeing certain transactions, such as the negotiation of contract terms, the signing of purchasing or leasing agreements, real estate closings and secured transactions. An attorney may engage in litigation to resolve disputes regarding zoning issues or seek legal remedy when contract terms have been violated.
]]>Some of the most important clauses in the lease include the rental rate and the term. Depending on the terms of the contract, a business owner may be on the hook for rent plus the cost of taxes and repairs. It may also be a good idea to negotiate a cap on rate increases in future years. If possible, tenants should negotiate a long-term lease as a landlord may be more willing to work with those who are staying for several years.
Other issues to consider when negotiating a commercial lease include usage rights and the right to sublet. Subletting or assigning a lease to another party can be ideal if a company fails or no longer needs the space that it currently occupies. Broad usage rights make it easier to make the most of a commercial space if a company's needs change or another tenant rents an adjacent area.
Seeking the advice of an attorney prior to signing a commercial lease may be in a business owner's best interest. This may help to ensure that a company negotiates terms that are in its favor. An attorney may also help to resolve issues such as title problems that could make a space unusable.
]]>There are many different costs that may come with owning a commercial space. For instance, it may need to be retrofitted or otherwise maintained for however long the company owns it. A banker or similar professional could help determine what those costs are and how to possibly reduce them. In some cases, buying a smaller building and renovating it makes more sense from a value perspective.
For the most part, buying a building for more than it is worth could cause problems in the future. The biggest problem is potentially taking a loss when it comes time to sell it. A broker can help determine if a given space is priced properly based on market conditions. Whatever a business owner decides to buy, it should be done with an eye on selling, leasing or otherwise relinquishing control of it in the future.
When purchasing an office building or warehouse, it is important to know if it has a clear title that can be transferred. If there are title disputes or other problems with a property, it may not be worth buying. An attorney could help an individual learn more about a given property prior to a purchase agreement. This may help a company to save money both now and into the future.
]]>This trend has caused an increase in rent prices for commercial spaces. In the top 25 cities for tech business, rent for office spaces rose 59 percent between 2000 and 2018, from an average of $199 per square foot to $316. Of the top markets for construction for new office space, 15 out of 20 were for tech markets.
It is not surprising that tech companies are driving demand for office spaces, considering their effect on the economy as a whole. Apple and Amazon's valuations both recently surpassed the trillion dollar mark. New tech jobs have surpassed the increases in other industries, with 1.1 million jobs added since 2010 for an 18.6 percent increase compared to 14.1 percent in the economy overall.
Much of the growth in the tech industry has clustered around cities like San Francisco. In some cities, the tech industry has become a critical factor for real estate growth. The rise in rental costs is making these areas unaffordable for some.
Business owners may benefit from speaking to an attorney with experience in commercial real estate before signing a lease agreement. Zoning laws usually determine what type of business can operate in a particular space. Many of the terms in a commercial lease agreement may be negotiable, including the cost of rental payments.
An attorney may be able to assist business clients who are looking to build new office space as well. Contract negotiation is key to obtaining a fair deal in a competitive real estate market. An attorney may be able to assist business owners and real estate agencies with commercial real estate contracts and litigation.
]]>There is no harm in asking if it is possible to break the lease early even if there is no exit clause. In some cases, the landlord benefits from being able to find a new tenant as it may be possible to charge a higher monthly rent. If the landlord denies the request, the lessee should consider leaving anyway. Generally speaking, whoever owns the property will have to make an effort to rent it again regardless of why a tenant stops paying rent.
As a show of good faith, a commercial tenant can find a new tenant to take over the current lease. This may allow a business owner to leave his or her current space without leaving the landlord with an empty building. Assuming that all parties agree to the deal, it can be beneficial for everyone involved.
If there are disputes or any other problems between companies and their landlords, it may be worth consulting with an attorney. An attorney may be able to review a lease or other agreements to see if any were violated. In some cases, a company and its landlord may be able to negotiate a resolution on their own without the need to go to court. Legal counsel may assist a business owner during these private settlement talks.
]]>A contract should require that contractors provide three competitive bids for all subcontracted work. This clause informs an owner or developer about competitive rates. The stakeholders also need to define allowable and unallowable labor. Specific rules about how labor costs will be calculated could eliminate gray areas that leave parties exposed to unexpected costs.
Equipment, like labor, needs to have rate calculations defined in a contract. Owners or developers should need to approve any equipment charges not specified in the contract. A contract also must address the likelihood of change orders by defining a pricing system and requiring itemized backup for all charges. The right to audit should accompany all clauses to ensure that contractors understand that they need to keep records to support every element of the job.
The development of thorough contract language could allow the involved parties to discuss concerns prior to breaking ground. Although almost any construction project will encounter delays or unexpected costs, contract language could guide the parties through issues in a timely manner. When there is a problem with one of the parties not adhering to the terms, an attorney could recommend how to respond to the situation. An attorney could examine the terms to see if a contract breach occurred. After documenting the violation, an attorney could propose a remedy and potentially resolve the problem during negotiations. If private discussions cannot bring the parties to agreement, an attorney could seek to enforce the contract by preparing a lawsuit.
]]>Everything from property to shares in a fund to currency can be exchanged in a blockchain transaction. The results of the transaction will be recorded in the encrypted, shared ledger. Theoretically, this could remove written contracts from some types of real estate transactions. However, there are a number of reasons why blockchain may take some time for real implementation in the market, including the need for just the kinds of assurances and guarantees that are represented in a real estate contract. Even when contracts are involved, however, blockchain technologies can be used to store and manage records and handle property transfers in a secure, verified manner.
Experts say that blockchain will affect the commercial real estate industry over time. Because ledger entries are validated by consensus, a transaction or property transfer can happen instantly in a verified and credible manner. Furthermore, blockchain could be used to build a token system that enables people to make small investments in bigger real estate projects.
Blockchain is still in its early days in the commercial real estate market, but it can be important for investors and developers to consider innovative projects and contracting methods. A business and commercial law attorney can work with developers and investors to develop contracts, address title disputes and more.
]]>Price tracking from Real Capital Analytics produced a 7 percent increase in prices from July 2017 to July 2018, but the majority of that growth appeared in the early months of the 12-month period. By comparison, this level of growth represents only 50 percent of the price increases experienced across commercial real estate sectors in early 2015.
An analyst from Green Street Advisors explained that supply levels were a little above long-term averages for offices, industrial properties and multi-family housing. With supply able to meet demand, increases in property prices have naturally tapered off. Although demand for space is expected to remain strong, rising interest rates will impede the ability of investors to finance purchases of commercial real estate affordably. Most investors expect the Federal Reserve Bank to issue another interest rate increase in the near future, which could signal a potential recession on the horizon.
Those involved in any commercial real estate transaction or development typically have large sums of money at stake. When issues arise that could jeopardize profits or derail a development, a party might want the advice of an attorney experienced with these types of matters. With legal guidance, the client could decide how to approach problems like title disputes, construction litigation or the enforcement of liens. An attorney could strive to move the deal along by negotiating with the opposing party directly.
]]>Buyers should determine if the space will still be useful several months or years into the future. It's also important to consider whether the space could be rented or sold once it's no longer useful to the company. Business owners should also calculate the cost of owning a commercial space as opposed to renting it. Furthermore, those who want to own a space should contemplate whether it makes more sense to buy an existing property as opposed to new construction.
Those who want to buy commercial real estate need to understand current and long-term market conditions prior to doing so. Buying during a period of neutral or negative price growth may not be a good idea. However, if commercial properties are seeing positive price growth in a given market, it can be worthwhile to buy instead of rent. Finally, when deciding to acquire commercial property, be sure to pick one in an area best suited to the company's needs.
There are many issues that business owners may need to be aware of when purchasing or building commercial real estate. An attorney may be able to help represent an owner's interests if construction litigation occurs. This may happen if there is a dispute over who owns the land that a structure is on or if there are problems with a building's title or how its location is zoned.
]]>