BOV (Broker Opinion of Value)
A written estimate of a property's market value prepared by a licensed broker, supported by comparable-sale data. Faster and less formal than a state-licensed appraisal; commonly used by lenders, sellers, and 1031 buyers for transactional pricing.
Skyline Properties example: Skyline Properties provides confidential BOVs on Manhattan commercial properties within 5 business days, no obligation.
Request a BOV →Appraisal
A formal, independent valuation prepared by a licensed or certified appraiser under USPAP standards, and what lenders rely on to size a loan. More rigorous and slower than a broker opinion of value (BOV), which is an informal broker estimate used for transactional pricing.
In practice: A seller often starts with a fast, confidential Skyline Properties BOV to decide whether to transact, then a lender orders a formal appraisal once a buyer is under contract.
Request a BOV →LOI (Letter of Intent)
A preliminary, usually non-binding document outlining the key business terms of a proposed transaction (price, deposit, due-diligence period, closing timeline) before a definitive contract is negotiated. It signals serious intent and frames the deal but generally does not obligate either party to close.
In practice: In an off-market process, the LOI is negotiated directly between principals, letting the seller control timing and which buyers ever see the asset.
Sell commercial property NYC →PSA (Purchase and Sale Agreement)
The binding contract that governs a sale, specifying price, deposit, contingencies, representations and warranties, closing conditions, and remedies. It supersedes the LOI and is the definitive legal agreement between buyer and seller.
In practice: A confidential disposition still runs the full institutional PSA, with the owner's counsel involved throughout. Confidentiality changes who knows about the deal; the rigor stays the same.
Sell commercial property NYC →Due diligence
The buyer's investigation period, defined in the PSA, to verify a property's physical, financial, legal, and environmental condition before the deal becomes firm. It covers leases, financials, title, surveys, environmental reports, and inspections, and typically allows the buyer to terminate or renegotiate.
In practice: In a discreet sale, diligence tours are arranged to avoid alarming tenants, which protects the income the buyer is paying for right through closing.
Commercial due diligence guide →Estoppel certificate
A signed statement from a tenant (or lender) confirming the key terms of its lease (rent, term, deposits, and the absence of landlord defaults) as of a given date. Buyers and lenders require estoppels to verify the rent roll and to make sure tenants cannot later contradict the stated terms.
In practice: Estoppels are how a buyer confirms that a commercial building's stated rent roll is real before closing.
Commercial due diligence guide →SNDA (Subordination, Non-Disturbance & Attornment)
A three-part agreement among lender, landlord, and tenant: the tenant subordinates its lease to the mortgage; the lender agrees not to disturb the tenant's possession on foreclosure (so long as the tenant performs); and the tenant agrees to recognize the lender or buyer as its new landlord. It protects occupancy and lender control at once.
In practice: Lenders financing a NYC office acquisition require SNDAs from major tenants so their leases survive a foreclosure.
Commercial due diligence guide →Title insurance
A policy that protects the buyer (owner's policy) and/or lender (lender's policy) against losses from defects in title (liens, encumbrances, ownership disputes, or recording errors) that existed before the policy date. Unlike other insurance, it insures against past events via a one-time premium at closing.
In practice: Title insurance is a standard NYC closing cost and the reason ACRIS recording accuracy matters to every transaction.
Commercial due diligence guide →ALTA survey
A detailed boundary and improvement survey prepared to ALTA/NSPS standards, showing property lines, easements, encroachments, and improvements. It is used by title insurers to remove the standard survey exception and is commonly required by lenders in commercial transactions.
In practice: An ALTA survey surfaces easements and encroachments that can affect buildable area on a NYC development site.
Commercial due diligence guide →Phase I Environmental Site Assessment (ESA)
A non-invasive investigation of a property's environmental condition (a review of historical use, records, and a site visit) to identify recognized environmental conditions. It involves no sampling; if it flags concerns, a Phase II ESA with physical testing follows. A Phase I supports the buyer's innocent-landowner defense.
In practice: Phase I ESAs are routine on former industrial or gas-station sites in NYC's outer-borough development pipeline.
Commercial due diligence guide →Rent roll
A schedule listing each tenant, space, lease term, current rent, escalations, deposits, and occupancy status. It is the primary document for verifying a property's income and is cross-checked against leases and estoppels during due diligence.
In practice: Verifying the rent roll against estoppels is how a buyer confirms a NYC multifamily building's collectible income before pricing it.
Commercial due diligence guide →Certificate of Occupancy (CO)
A municipal document, issued in NYC by the Department of Buildings, certifying that a building complies with applicable codes and may legally be occupied for its stated use. Use or occupancy inconsistent with the CO can block financing or trigger violations; temporary COs (TCOs) precede a final CO.
In practice: A residential conversion does not deliver units until it secures a new CO reflecting the change of use from office to residential.
Commercial due diligence guide →Re-trade
When a buyer attempts to renegotiate (typically lower) the agreed price or terms after the PSA is signed, usually citing issues found in due diligence. It can be legitimate, on a material adverse finding, or a tactic; sellers view aggressive re-trading negatively.
In practice: A controlled off-market process with a vetted buyer reduces re-trade risk, because pricing converges on real comps rather than an auction outlier.
How we price →
