Commercial Real Estate Attorney: What They Do and When You Need One
A commercial real estate attorney handles the legal side of transactions involving office buildings, retail space, industrial properties, and multifamily assets. Their work covers contract drafting and review, title examination, due diligence, and closing coordination. On a $2 million commercial acquisition, the cost of a commercial real estate lawyer — typically $3,000–$10,000 depending on complexity — represents a fraction of the risk exposure of going without one.
This guide covers when to hire a commercial real estate attorney versus when a standard closing service is enough, what commercial real estate law covers in practice, how real estate litigation factors in, and why the right real estate closing attorney is not always the cheapest one you can find.
What a Commercial Real Estate Attorney Actually Does
Transaction Work
The primary work of a commercial real estate lawyer in a standard transaction is reviewing and negotiating the purchase and sale agreement. Unlike residential contracts, commercial deals use fewer standardized forms and more bespoke language. A commercial real estate attorney reads every clause: representations and warranties, indemnification provisions, closing conditions, and exclusivity periods.
They also coordinate the title search, review the title commitment for exceptions that could affect your use of the property, and order any endorsements you need. A senior lien, an easement that limits your access, or a zoning issue discovered before closing is fixable. The same issue discovered after closing is your problem.
Lease Review and Negotiation
If you’re acquiring a property with existing tenants, your commercial real estate lawyer reviews each lease. They identify below-market rents, unusual tenant rights, co-tenancy clauses that could trigger rent reductions, and estoppel certificate discrepancies. These details directly affect your investment return.
Commercial Real Estate Law: Litigation and Disputes
Real estate litigation covers a wide range of disputes: boundary disagreements, landlord-tenant conflicts, breach of purchase agreement, zoning challenges, and construction defect claims. A commercial real estate attorney who handles litigation is different from one who only does transactional work — make sure you know which type you’re hiring before a dispute arises.
If you’re in a dispute, commercial real estate law gives you several resolution paths: demand letters, mediation, arbitration, and civil litigation. Most disputes settle before trial. Your commercial real estate lawyer can assess your leverage and recommend the most efficient path based on the amount at stake and the strength of your position.
Your real estate closing attorney coordinates the final steps of the transaction: confirms loan payoffs, reviews the settlement statement, handles deed recordation, and disburses funds. In some states, using a real estate closing attorney is legally required. In others, it’s optional but strongly advisable on transactions over $500,000.
Bottom line: Commercial real estate law is too specialized for a general practice attorney to handle well. Find a commercial real estate attorney with experience in your property type and market, check their transaction volume, and verify they have litigation capability if you anticipate any disputes.