Buyer resource
Commercial real estate due diligence checklist
A starting list of what to request and review before you buy a commercial property. Every deal is different, so work with your attorney, lender and inspectors on what applies to yours.
01
Financial review
- Rent roll and current tenant ledger
- Operating statements for recent years and year to date
- Property tax bills and insurance policies
- Utility bills and service contracts
- Capital expenditure history and planned work
02
Leases and tenants
- Full copies of every lease, amendment and guaranty
- Estoppel certificates from tenants
- Subordination and non-disturbance agreements where needed
- Security deposits and any tenant concessions
- Renewal, termination and expansion options
03
Title and survey
- Title commitment and copies of exceptions
- Current survey showing boundaries, easements and encroachments
- Recorded covenants, restrictions and association documents
- Liens, judgments and open permits search
04
Physical condition
- Property condition assessment by a qualified inspector
- Roof, structure, HVAC, plumbing and electrical review
- Parking, paving and site drainage
- Accessibility compliance review
- Warranties and maintenance records
05
Environmental
- Phase I environmental site assessment
- Phase II testing if the Phase I recommends it
- Asbestos, mold or other building material concerns
- Flood zone determination and related insurance quotes
06
Zoning and government
- Zoning verification for current and intended use
- Certificates of occupancy and open code violations
- Building permit history
- Planned road, utility or land use changes nearby
07
Financing and closing
- Lender appraisal and loan requirements
- Entity documents for the buying company
- Final walkthrough and tenant notice letters
- Proration of rents, taxes and expenses
- Transfer of contracts, keys and records
This checklist is general information, not legal, tax or financial advice. See the commercial buying guide for the full process.
Have a property in mind?
Talk through your due diligence plan with Jose before you commit.