Commercial Real Estate
Our Commercial Real Estate Group establishes a strong bond with our clients by treating their issues as our own and embedding ourselves with our clients’ businesses. We cater to various real estate matters which include acquisitions and dispositions, joint venture transactions, commercial leasing, and debt and equity financing.
We are proud of our client-centric approach, expertise, and proficiency in resolving legal issues and getting your transactions to the finish line. We value our clients' experiences as a genuine measure of our success.
Frequently asked Questions
A 1031 Exchange (also called a Starker Exchange or Like-Kind Exchange) is a valuable tax planning procedure that, if properly and strictly followed, allows the owner of real estate investment property to sell the property with accumulated capital gains and then buy a “like-kind” property while deferring/postponing capital gains tax.
When you consider selling your investment property, to the extent that property has increased substantially in value from the time you acquired it, you should think if you want to defer or pay taxes following the sale. Any forward-thinking investor would consider investing more rather than paying as much as 40% in taxes. It is a powerful investment strategy as well as an estate planning tool the investor can continuously use deferring capital gains on the investment properties until death, potentially avoiding them all together.
For example, we recently represented an owner of a commercial property that had been in his family for decades and had close to zero cost basis. The neighborhood in which this property was located had seen exponential increases in value, and a developer made him an “offer he couldn’t refuse.” However, our client was concerned about paying millions in capital gains taxes and having no guarantied income on which to live. With our help, he utilized both a 1031 exchange and creative estate planning techniques to defer these gains and eventually pass them on to his heirs, who would enjoy a step up in basis upon their inheritance and effectively “wipe out” these gains. Moreover, he “exchanged” his property for 2 very safe “triple net” leases with national tenants, essentially giving him a 20-year income stream, hands free ownership and the ability to “cash out” later with refinancing, for additional, tax-free proceeds
For assistance with your estate planning needs, please contact Jotkus Law Group
The Simultaneous Exchange. Real Time Exchange.
In a simultaneous exchange, the property you sell (“Relinquished Property”) and the new property you buy (“Replacement Property”) are transferred simultaneously between two parties. This type of exchange is not very common.
The Delayed Exchange. Sell today – exchange within 180 days.
The most common exchange structure is when the Relinquished Property is sold, the proceeds are delivered to an independent third party, known as a Qualified Intermediary and those proceeds are subsequently used to purchase the Replacement Property from a third party.
The Build-to-Suit Exchange. Sell – Improve – Buy.
The build-to-suit exchange, known as construction or improvement exchange, gives the opportunity to use the funds from the sale (“Exchange Funds”) for construction, renovations or new improvements to the Replacement Property. This type of exchange is more complex as well as costly.
The Reverse Exchange. Buy today – Sell within 180 days.
A “reverse” exchange occurs when you purchase the Replacement Property before transferring the Relinquished Property. While a valuable tool, this type of exchange requires that the Seller has cash to buy the Replacement Property before selling the Relinquished Property.
For assistance with your estate planning needs, please contact Jotkus Law Group
To receive the full benefit of a 1031 exchange, your replacement property should be a like-kind property of equal or greater value (or you risk recognizing “boot”). A like-kind property is a property of the same nature, character or class regardless of quality or grade. The IRS is very liberal in this interpretation and allows the exchange of an apartment building for raw land, or a ranch for a strip mall, for example. In other words, as long as you exchange real property for real property, that satisfies the “like kind” test.
You must identify a Replacement Property within 45 days after the sale of the Relinquished Property and then conclude the purchase of the Replacement Property within 180 days after the initial sale. Of note, there are additional rules that allow the purchases of more than one property identified and purchased that are beyond the scope of this article.
The properties involved on both ends of the exchange must be “investment or business” property, not personal property or primary residences. In addition, the Seller of the Relinquished Property must be the same tax-payer as the buyer of the Replacement Property. However, there is an exception with respect to single member limited liability companies as long as the sole member is the same.
If you plan to do an exchange, you should let your attorney know so that the “Exchange Cooperation Clause” is included in the purchase and sale agreement. And most importantly, you must use a Qualified Intermediary, which is essential to completing a successful the exchange. Although the process is relatively simple, the rules are complicated and filled with potential pitfalls.
For assistance with your estate planning needs, please contact Jotkus Law Group
Commercial property deals often involve more than just a contract. A commercial real estate attorney reviews and negotiates contracts, performs due diligence, advises on zoning, resolves disputes, and manages closing documents.
: Failing to consult an attorney can lead to unexpected costs, legal disputes, or liability.
Commercial leases are often tilted in favor of the landlord. A commercial lease review lawyer evaluates legal risks, ensures balance, and advises on negotiation strategies.
: Overlooking terms like rent escalations, maintenance clauses, or subleasing rules can lock you into a bad deal.
Lease disagreements can cost you time, money, and your reputation. A commercial lease dispute attorney negotiates on your behalf, clarifies lease obligations, and, if necessary, represents you in litigation.
: Misunderstood lease terms or unfair rent hikes can escalate quickly.
Closing commercial property is more than signing papers. A commercial real estate closing attorney manages inspections, clears title, finalizes financial documentation, and ensures all agreements are lawfully executed.
: Without proper legal guidance, issues like title defects, lien disputes, or delayed filings can arise.
Buying commercial property involves both opportunity and risk. A commercial property acquisition attorney helps with zoning reviews, title investigations, financing documents, and contract compliance.
: Missing key due diligence steps can lead to overpaying or legal liability.
Due diligence protects you before committing millions. A due diligence commercial property lawyer checks zoning, lease terms, lien status, and environmental reports to secure your investment.
: Ignoring environmental, structural, or financial issues can lead to lawsuits or property loss.
Local zoning laws change frequently and carry high stakes. A commercial zoning dispute lawyer advocates during hearings, appeals zoning decisions, and ensures property use aligns with municipal codes.
: Property usage conflicts or permit violations can result in project shutdowns.
Industrial leases come with unique requirements and regulations. An industrial property lease lawyer ensures compliance with environmental laws, evaluates infrastructure obligations, and secures favorable lease terms.
: Standard real estate templates won’t address hazardous use or large-scale logistics needs.
Subleasing sounds simple—but your lease may say otherwise. A commercial lease agreement lawyer reviews subleasing clauses, drafts amendments, and helps negotiate with the property owner.
: Unauthorized subleases may violate your contract and result in eviction.
Budgeting for legal support is part of smart business planning. Costs vary based on services, but most commercial real estate lawyers offer fixed-fee or hourly options for closings, reviews, and negotiations.
: Uncertainty about legal fees may cause business owners to skip help.
A lease review protects your financial and operational flexibility. A commercial lease review lawyer examines rent escalation terms, repair duties, renewal options, exclusivity rights, and termination clauses.
: Missed clauses can lead to surprise rent hikes or repair liabilities.
Leases aren’t one-size-fits-all. A commercial real estate attorney helps negotiate fair rent, modification rights, tenant improvement allowances, and exit strategies.
: Landlords often use boilerplate terms that don’t fit your business.
Lease changes must be documented properly. A commercial lease agreement lawyer ensures lease changes are formalized with proper legal language, signatures, and enforceable timelines.
: Verbal agreements aren’t legally binding.
Your lease is a major business risk factor. Legal review ensures build-out rights, non-compete clauses, renewal protection, and clear default provisions.
: Inflexible lease terms can stall growth or trigger unexpected costs.
You wouldn’t buy a property without review—why lease one? An experienced commercial lease attorney aligns lease terms with your operational goals and protects you from hidden risks.
: Even minor clauses can significantly impact liability or flexibility.
Missed payments can spiral fast. A commercial landlord-tenant attorney can negotiate repayment terms, prevent escalation, or represent you in court.
: Lease violations may lead to default notices or eviction.
Environmental fines can bankrupt a project. A lawyer reviews indemnity clauses, environmental reports, and ensures compliance with EPA and local laws.
: Leases often shift cleanup duties onto the tenant.
Easements can restrict access, development, or use. A commercial real estate lawyer investigates title records, clarifies easement terms, and negotiates redefinitions when necessary.
: Ignored easements may reduce property value or violate city codes.
Subleases can create hidden liability. Review lease language with an attorney to request landlord approval and document terms.
: Violating assignment clauses may lead to termination.
Zoning defines what your property can become. A zoning attorney helps prepare variance applications, attend planning meetings, and liaise with local agencies.
: Expansion or redevelopment may not be allowed under current zoning.
Disagreements about rent can lead to eviction or lawsuits. A commercial landlord-tenant attorney interprets the lease, mediates disputes, and enforces contract terms in court if necessary.
: Lease terms aren’t always clear on payment escalation or repair offsets.
Construction and redevelopment projects often spark disagreements. A redevelopment lawyer prepares disclosures, reviews permits, and defends your rights in negotiations or litigation.
: Boundary changes, easement shifts, or use changes can invite legal challenges.
Shared access often causes tension between neighboring businesses. A real estate attorney examines plat maps, resolves interpretation conflicts, and negotiates usage rights.
: Disagreements over easement terms may block entrances or delay construction.
Exiting a lease early can get complicated. A lawyer reviews your lease for escape clauses, drafts settlement terms, and negotiates with the landlord.
: Penalties or ongoing rent may be required.
Clear expectations prevent legal trouble. Engage legal counsel before signing. Attorneys draft and review contracts to avoid costly misunderstandings.
: Ambiguous agreements cause confusion about deliverables and timelines.
Navigating property laws in your area can be complex. A commercial real estate lawyer in Northbrook understands both Illinois regulations and local real estate customs, ensuring your transaction stays compliant and protected.
: Without local legal insight, you may overlook zoning issues, permit needs, or contract red flags.
Suburban commercial deals come with city-level complexity. A commercial lease attorney in Chicagoland will guide you through lease structuring, negotiation, and dispute resolution within regional compliance zones.
: Urban rules and local bylaws often intersect in ways that general practice lawyers may miss.
Landlord-tenant law can quickly become contentious. A commercial landlord-tenant attorney advises on eviction law, rent collection, property condition standards, and lease term enforcement.
: Lease violations, eviction procedures, and unpaid rent disputes require legal clarity.
Commercial disputes can stall development, leasing, and cash flow. A Chicagoland commercial real estate lawyer offers dispute resolution through negotiation, mediation, and when needed, litigation.
: Conflicts over land use, rent terms, or contract defaults often go unresolved without legal help.
Industrial sites often face stricter code enforcement and buildout rules. A local industrial property lease lawyer in Northbrook ensures your lease meets zoning, utility, and industrial compliance standards.
: Failing to comply with environmental and logistical lease terms can halt operations.
I don't often take the time to write reviews, however in this particular instance I felt compelled to. I hired Jotkus Law Group and worked with Alena on a real estate deal closing. The experience was extraordinary. She was thorough, forward-thinking, and above all, she was kind. Her expediency and expert knowledge helped me to quickly accomplish what needed to be done. Alena even went the extra mile and counseled me on unrelated matters which was greatly appreciated. She was an absolute joy to work with. If you are looking for an attorney you can trust, that goes above and beyond to put the client first, I highly recommend Jotkus Law Group... A true 5 star experience.
Finding a good lawyer, that is looking Out for you and is there when you need him is not easy . Alena is very knowledgeable, honest and trustworthy person. She is handling all my real estate Contracts and did my estate trust planning. I highly recommend you guys trying her out.