Commercial Real Estate

When you want to ensure you don’t forget anything, a checklist can be very helpful. The purchase of a commercial property has many details and steps. This checklist covers the major topics and can inspire more exhaustive checklists for your team of experts.

1. What is the intended use for this property?
2. Will the property support future development plans? (parking, construction, access, zoning)
3. What is included in the purchase of the property? (fixtures, vehicles, deposits, and so on)
4. Who owns the subterranean or mineral rights?
5. Does the property have any environmental issues?
6. What is the current lease situation?
   • Are there any lease options against the property?
   • Are any of the tenants delinquent?
   • Do tenants have the option to extend the current lease?
   • Vacancies?
   • Expected vacancies in the future?Is the presumed seller the actual owner?
7. Does the seller have the power to sell the property? Does anyone else have to approve?
8. Current debt against the property?
   • Terms of current mortgage (balance, interest rate, repayment terms)
   • Other liens against property
   • Other requirements (minimum account balance, prepayment penalties, and so on)
   • Does lender receive a portion of the profits?
9. Current appraisal
10. Current inspection
11. Land survey
12. Copy of all leases