Due Diligence: Commercial Real Estate Acquisitions

Thorough due diligence protects against unforeseen risks and validates underwriting assumptions. A systematic approach ensures all critical areas receive appropriate attention.

Key Diligence Areas

• Physical condition: Building systems, deferred maintenance
• Title and survey: Ownership, easements, encumbrances
• Environmental: Phase I and Phase II assessments
• Legal: Lease abstracts, contracts, litigation

Financial Analysis

Rent roll verification, expense analysis, and market rent studies validate income assumptions. Historical financials should be analyzed for trends and anomalies.