Imagine living in an elegant tower: a beautiful living room that overlooks an entire city. You can see the sun rise and set in all of its glorious. It would be a fantastic living situation, wouldn’t it? Well, so long as you’re not afraid of heights.
As great as it would be, the Burj Khalifa — the tallest building in the world, standing 2,722 feet tall in Dubai — demonstrates that living in a tower may not always be the best deal. Residential real estate in the mixed-use tower runs a hefty price, and residents are being threatened with no elevator use after a dispute erupted between the residents and the developer of the property. The dispute is over unpaid fees, and the developer, Emaar Properties, is threatening to shut down the elevators and turn off the air conditioning.
Even though this story is about residential real estate, you could easily apply the circumstances of this story to commercial real estate. It’s not as if businesses that lease space are incapable of missing a payment. Over the course of history, plenty of rental disputes have involved real estate owners and leasing companies.
These disputes can cripple a company, or cause real estate owners to use large chunks of their time dealing with a dispute when they would rather be working on other matters. Commercial real estate is a complicated area that requires the parties involved to be well advised from a legal standpoint. There are complex laws, documents and contracts involved in commercial real estate, so it behooves anyone involved in these dealing to have an experienced attorney present.
Source: CNN, “Developer of world’s tallest building threatens to stop elevators over fees row,” Feb. 11, 2014