Ingress and Egress Rights in Industrial Real Estate
Ingress and egress rights give industrial property owners and tenants the legal right to cross a different property to get to theirs.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!What Are Ingress and Egress Rights?
Ingress and egress rights, or the defined legal right to enter and exit a property, are critically important for industrial real estate assets. Distribution centers and warehouses, in particular, need to ensure that drivers and trucks can get to a property as smoothly as possible.
While many industrial properties may be positioned alongside access roads, in larger areas, such as an industrial park, an industrial asset’s parcel may be landlocked, requiring traffic to cross over other private property to get in or out. Even if you have a good relationship with the owners and managers of adjacent buildings, it is essential to obtain the legal right to utilize their property — otherwise, you may risk legal liability by trespassing.
If you need access to another property to get to or from yours, you can generally seek an easement. Easements are essentially legal agreements that grant the right to use the property you don’t own within the confines of specific tasks, such as moving from a public street to your property. In order to get an easement, you will likely need to negotiate with the owner of the neighboring building, though one may already be in place — be sure to check your deed.
Related Questions
What are ingress and egress rights in industrial real estate?
In industrial real estate, the right of ingress refers to the legal right to enter a property. The right of egress is essentially the opposite — the legal right to exit a property. In most cases, deeds outline points of ingress and egress. When a property is in a situation like those mentioned above, the owner would typically seek an easement. Easements are legal agreements which grant the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
Source: Commercial Real Estate Loans - Ingress and Egress Rights
What are the legal implications of ingress and egress rights?
In commercial real estate, the right of ingress refers to the legal right to enter a property, while the right of egress is the legal right to exit a property. In most cases, deeds outline points of ingress and egress. Rights of ingress and egress are extremely important, as commercial real estate ownership doesn’t inherently translate into a right to access the property. When a property is in a situation where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
In cases where a registered easement has not been granted through the local authorities, an easement is a legal agreement which grants the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. The legal implications of ingress and egress rights depend on the specific situation, and it is important to consult a lawyer to ensure that all legal requirements are met.
How do ingress and egress rights affect the value of industrial real estate?
Ingress and egress rights can have a significant impact on the value of industrial real estate. Easements and land-use agreements are important for providing access to the property, and can be used to increase the value of the property by allowing for more efficient use of the land. For example, if a property is landlocked, an easement can be used to provide access to the property, which can increase its value. Additionally, if a property has a shared driveway with a neighboring property, an easement can be used to ensure that the owner of the property has the right to use the driveway. In both cases, the value of the property can be increased by having the right of ingress and egress.
What are the benefits of having ingress and egress rights in industrial real estate?
Having ingress and egress rights in industrial real estate is beneficial because it allows the owner to access the property without having to obtain permission from a neighboring property owner. This can be especially important in cases where a property is landlocked or surrounded by other properties, or when a shared driveway is involved. Having ingress and egress rights also ensures that the owner has the legal right to enter and exit the property, which can be important for businesses that rely on access to the property for their operations. Source
What are the risks associated with ingress and egress rights in industrial real estate?
The risks associated with ingress and egress rights in industrial real estate are similar to those associated with any other type of commercial real estate. The primary risk is that the owner of the property may not have the legal right to access the property, or may not have the right to access it in the manner they need. This could lead to costly legal disputes, or even the inability to use the property at all.
In addition, if the owner of the property does not have the right to access the property, they may be unable to use the property for its intended purpose. This could lead to a loss of potential income, or even a complete loss of the property.
Finally, if the owner of the property does not have the right to access the property, they may be unable to obtain the necessary permits or licenses to use the property. This could lead to fines or other legal action.
How can investors protect themselves when negotiating ingress and egress rights in industrial real estate?
Investors can protect themselves when negotiating ingress and egress rights in industrial real estate by obtaining an easement or land-use agreement. An easement is a legal agreement which grants the right to use another entity’s property in a limited, specified capacity — in this case used to establish rights of ingress and egress for accessing the commercial property. In cases where a registered easement has not been granted through the local authorities, or where ingress and egress issues are not addressed on a property’s deed, a land-use agreement can be utilized instead.
It is important to note that commercial real estate ownership doesn’t inherently translate into a right to access the property. Therefore, investors should ensure that they have the right to access their property by obtaining an easement or land-use agreement.
For more information, please visit Commercial Real Estate Loans' Ingress and Egress Rights page.