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Industrial Real Estate Disputes

What is an Industrial Real Estate?

Industrial real estate is a sub-category of commercial real estate. It refers to factories, plants, distribution centers, garages, warehouses, etc. Because industrial production requires vast space, industrial real estate’s location is on the periphery of cities, adjacent to airports, seaports, highways, and other significant traffic hubs. Cities designate specific areas for industrial real estate on a zoning map, determining where to construct such facilities to avoid traffic disruption and everyday life inconveniences.

Unlike commercial property (which serves the needs of ordinary customers), industrial real estate interacts with large companies, offering appropriate space for various industrial activities, such as manufacturing, storage, research, and distribution.

Types of Industrial Real Estate

Industrial real estate includes industrial land, bulk warehouses, flex warehouses, heavy manufacturing spaces, light assembly facilities, cold storage facilities, data centers, industrial showrooms, and research and development sites.

Industrial Real Estate Disputes

Industrial property disputes arise due to property conditions, material defects, maintenance, repairs, payment problems, noncompetition, landlord-tenant issues, eviction, purchase options, etc.

When a dispute arises, the central question is what dispute method is the most effective. The answer to that question can make a difference between a successful continuation of your enterprise or a business demise.

Resolving Industrial Real Estate Disputes in Litigation

Going to court is a conventional method for resolving industrial real estate disputes. Although large business enterprises engage in litigation routinely, the court process has proven to be time-consuming, costly, and ineffective for dealing with industrial real estate disputes. Because the industrial property is valuable, the costs of resolving disputes in court can reach astronomical figures. Think of hefty attorneys and court filing fees. The costs add up with each litigation stage. Besides, the vindictive court process is incapable of true reconciliation between the disputed parties, negatively affecting ongoing business operations.

Industrial Real Estate Dispute Mediation

Unlike litigation, mediation provides the disputing parties in industrial real estate disputes with countless advantages. Mediation is an alternative dispute resolution method, meaning parties resolve the conflict privately, without court intervention.

The key features of mediation are voluntariness, neutrality, confidentiality, and its reconciliatory effects.

The parties sign an agreement to mediate, choosing the mediator voluntarily. The mediator is a third neutral person (usually a retired judge, attorney, or other professional) with subject matter experience. The mediators have negotiation and communication skills and in-depth knowledge of industrial real estate.

The role of the mediator is to facilitate negotiations without resolving the dispute, imposing solutions, or giving legal advice.

The mediation process begins with the introduction stage, in which the mediator presents their credentials and explains the procedure. The parties then can offer opening statements regarding the disputed matter. Each party then withdraws to a separate session room for private talks (caucuses) with the mediator, who goes between rooms listening to their arguments. During the joint session, the parties present their offers and counteroffers, negotiating the contested issues. The mediator fosters negotiations, motivating the parties to settle.

Mediation is a confidential dispute resolution method, meaning that nothing revealed during mediation sessions can become part of the public records. That applies to future litigation as well.

In contrast to litigation, mediation knows no confrontation and adversarial court fight. That enables the disputed parties to continue successful business cooperation after resolving the dispute. The mediator creates a neutral and friendly atmosphere, stimulating the parties to talk through their differences, and find common ground for future cooperation.

After they settle, the parties sign the mediation agreement, which is binding and enforceable as a court judgment.

Industrial Real Estate Disputes Resolution Made Simple

David L. John is a top-notch Florida mediator with over 30 years of business litigation experience.

Mr. John possesses unique insights into manufacturing, construction, engineering, consulting, industrial, commercial, and residential real estate. Using that experience and sophisticated mediation skills, David can help you find the solution that fits your individual needs.

Please call today to schedule your free consultation.

David John

David L. John

My experience of over 30 years of actual hands-on business experience in manufacturing, professional engineering consulting, construction, commercial & residential real-estate transactions and general business.

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