What is due diligence in commercial real estate?

Due diligence is the period during a commercial real estate transaction when buyers investigate the property before completing the purchase. This often includes reviewing financial information, existing leases, inspections, zoning, environmental considerations, insurance, title work, and other documents that may affect the property’s value or future use.

The purpose of due diligence is to help buyers make informed decisions based on accurate information rather than assumptions. The scope of due diligence varies depending on the property and the transaction.

Every property is unique. If you have questions about what due diligence may involve for a particular opportunity, I’d be happy to help explain the process and discuss what information is typically reviewed.