Due diligence is a comprehensive, complex, and critical stage in any commercial real estate acquisition. You don’t want to leave any stone uncovered, and you want the most time available to review all documents and look for any and all possible red flags with the property, title, tenant relationships, and numerous other considerations.
That’s why we’ve created the checklist below, which outlines many of the key documents, records, and financial information needed for a full and complete due diligence on a prospective property acquisition.
In many transactions, we typically urge clients to incorporate this checklist into the sale contract and require that the specified due diligence period will not commence until the date that the seller produces the last of each of these deliverables. Simply put, when you’re the potential buyer of a property, you deserve to have all the necessary documentation in your hands before you start the intensive due diligence process.
Whether you’re a growing business looking for your first independent location, or a developer with an experienced deal team conducting diligence on multiple acquisitions simultaneously, we hope this checklist will serve as a helpful guide for the items you’ll need to make the most informed decision possible on your next real estate acquisition.
Click here for a PDF copy: Due diligence checklist for commercial real estate acquisitions
Note: The information provided herein is intended for general purposes only and is not intended to be legal advice. If you desire legal advice for a particular situation, you should consult an attorney.
Justin Newman represents purchasers, sellers, landlords, tenants, owners, operators, lenders and borrowers in real estate transactions and litigation. He can be reached at firstname.lastname@example.org or (312) 580-2327.
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