Commercial acquisition diligence
A practical investigation sequence before your closing obligations become firm.
Use this as a working agenda. Confirm transaction-specific requirements with your advisers. Checkmarks are temporary and reset when the page reloads.
Request leases, amendments, rent rolls, financials, service contracts, insurance history, permits, surveys and tax records. Track what is missing.
Compare rent-roll charges with lease obligations, bank deposits, receivables and concessions. Occupancy alone does not establish collectible income.
Record rent, dates, options, recoveries, maintenance, assignment, termination and notice requirements. Read all amendments together.
Confirm zoning, legal occupancy and the intended tenant use with the appropriate jurisdiction. Physical use does not establish lawful use.
Ask counsel and the surveyor to explain exceptions, easements, access, parking and encroachments.
Engage an appropriate environmental professional early enough to complete follow-up investigations before deadlines.
Evaluate roofs, structure, HVAC, electrical service, plumbing, life safety, accessibility and immediate repairs with qualified specialists.
Obtain current quotes matched to the property, uses, replacement exposure and lender requirements.
Model owner-borne increases and recovery limitations; verify assumptions against current records.
Include acquisition, closing, initial repairs, leasing capital, financing costs and working reserves.
Separate lender quotes from commitments. Track third-party reports, equity documentation, reserves and closing conditions.
Reconcile deposits, prepaid rent, taxes, operating expenses, prorations and transferred contracts.
Arrange management authority, vendor contacts, utilities, insurance, account access and tenant notices.
Assign an owner and resolution deadline to each issue. Decide explicitly whether to close, renegotiate, extend or walk away.
Have counsel identify diligence, financing, title, survey, deposit and termination deadlines. Record the exact notice method and delivery responsibility before relying on an exit right.
Reconcile required estoppels, SNDAs, consents and unresolved tenant claims with the purchase agreement and financing conditions; an estoppel does not replace the underlying lease review.
An original editorial checklist. It is not a legal form, lender requirement list or substitute for a property-specific investigation.
Research context
These sources inform the underlying investment questions. The checklist is an original working agenda; the sources do not impose every listed step on every transaction.