USA - ALABAMA Law and Practice Contributed by: Adam J. Sigman, Crystal H. Walls, Nathan Stotser and Katie Sinclair, Dentons
Dentons 2311 Highland Avenue South Suite 500 Birmingham, Alabama 35205 USA
Tel: +1 205 930 5100 Fax: +1 205 930 5101 Email: marketing.us.dsp@dentons.com Web: www.dentons.com
1. General 1.1 Main Sources of Law
reducing new developments and projects. Sub - sequently, commercial real estate became more limited to certain asset categories in specific markets, such as metropolitan areas and sub- markets. Higher rates and lower appraised values due to levelling rents and less occupancy have slowed permanent refinancing of both construction debt and existing permanent credit facilities. Multi - family experienced these higher interest rates yet maintained its place as a solid long-term asset in commercial real estate. Meanwhile, returns to the office never rounded back to pre-COVID-19 pandemic numbers. Hav - ing suffered the largest rise in vacancy due to post-pandemic downsizing, office properties appear to be most concerning in commercial real estate, as waves of such properties arrive at loan maturity dates with reduced appraised values in a difficult capital market for credit. Together, these factors have combined to create a clogged commercial real estate market. In Alabama, the state’s residential housing mar - kets followed the national decline. Nevertheless, the demand for vacation homes along the vari -
Knowledge of federal, state and local law, of the changes to those laws, and of local forms and customs is essential in successfully and efficiently practicing real estate law. Alabama land records are handled on a county-by-county basis, and laws are interpreted accordingly. Many probate offices have implemented tech - nological improvements for better filing, record- keeping and access to recorded documents, though these developments can vary significant - ly between counties. Successful transactions often involve extensive negotiations. Closing commercial deals involves standard forms and requirements for both state law compliance and title insurance. All Sections referenced herein are Sections of the Code of Alabama (1975). 1.2 Main Market Trends and Deals Trends in 2023 In 2023, higher interest rates and continued high construction pricing caused a plateau in the resilient commercial real estate industry,
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