A resurgence in commercial real estate markets in many parts of the United States has both veteran property investors and new players engaged in more – and larger – transactions. Because of the financial stakes involved in buying and selling commercial real estate, investors need to conduct thorough due diligence on transactions prior to closing. A common question that arises is whether to use a commercial due diligence checklist.
How A Commercial Due Diligence Checklist Stacks Up to a Tailored Process
Commercial due diligence checklists are readily available online, and can be helpful in the pre-transaction phase by helping sellers identify issues that need to be resolved in order to get a property ready for sale.
They can also assist prospective purchasers or investors in identifying whether there are obvious issues with the property that could warrant further investigation. These checklists can help prospective purchasers identify when it may be beneficial to get other professionals involved if the transaction proceeds.
Follow the Information Trail (Not Just a List)
While using a checklist can serve as a useful guide when scouting commercial properties, relying on a checklist for the actual transaction due diligence can bring unintended consequences. If you rely on a commercial due diligence checklist, your due diligence is unlikely to go beyond the items on the list itself. This could result in missing key information that may be material to a specific investment decision. There is also the risk that a prospective buyer using a checklist won’t have the full picture of the potential issues in a transaction.
A more thorough real estate due diligence process, one that is tailored to the transaction itself, can limit risk and help potential buyers and investors make sound decisions.
Using a bespoke due diligence process can help real estate purchasers and investors ensure a thorough analysis, so that nothing is assumed or left open to interpretation.
When you outsource your due diligence needs to an expert service provider, you’re getting the benefit of trained, experienced legal professionals who know exactly what to look for – and what to look at – in commercial real estate transactions. Baer Reed provides a variety of legal support services, including due diligence solutions. To learn more, contact us online today, or call us at (888) 433-1990.
Mr. Reyes graduated with honors from the Ateneo de Manila University, where he received the Procter and Gamble Student Excellence Award. He obtained his Juris Doctor degree from the Ateneo de Manila School of Law. During law school, Mr. Reyes was part of the Philippine delegation to the Willem C. Vis International Commercial Arbitration Moot held in Vienna, Austria. He was also a member of the Ateneo Society of International Law and the St. Thomas More Debate Society. He completed his internship at the Public Attorney’s Office. He wrote a thesis entitled: “To Kill A White Elephant: An Analysis of the Fiduciary Exception to the Corporate Attorney-Client Privilege”. Mr. Reyes is admitted to practice law in the Philippines and the State of New York.
Ms. Lardizabal-Manzano is a graduate of San Sebastian College-Recoletos, where she earned her B.A. in Political Science. In 2003, she received her law degree from Lyceum of the Philippines and was admitted to practice law in 2004.
Matthew Hersh earned a B.A. in Political Science from Columbia University in 1990 and graduated cum laude from Georgetown University Law Center in 1999. He also holds a master’s degree in international relations from the Georgetown University School of Foreign Service.
Cap. Avi Levak (Res. IDF) graduated from from Israel’s prestigious Ben-Gurion University of the Negev with a Bachelor of Science in Computer Science and Mathematics. He is also a Leadership and Communication coach trained in TuT coaching by Alon gal in Israel. Avi specializes in high-level, in-depth analysis of business and client needs, within systems and software strategy and architecture.
Ms. Tyler graduated cum laude from Georgetown University and received her law degree, cum laude, from Georgetown University Law Center. During law school, she interned at the United Nations Economic Commission for Europe. She also worked on The Tax Lawyer journal and was a member of the award-winning Barristers’ Council Mock Trial Team. Ms. Tyler is admitted to practice law in the State of California and the District of Columbia.
Ms. Cruz-Anonuevo graduated cum laude and top nine in her batch from Miriam College with a degree of Bachelor of Arts in InternationalStudies. She obtained her Juris Doctor degree from Ateneo de Manila University School of Law in Rockwell. During law school, she interned in Rivera, Santos, Maranan & Associates. She was also part of Ateneo’s Labor Law Bar Operations. She wrote her thesis on, “Stealing Privacy: Limitations on Media’s Photographic Invasion.,” Ms. Cruz-Anonuevo is admitted to practice law in the Philippines.
Ms. Aquino-Batallones obtained a Bachelor of Arts degree in Development Studies (with Minors in Global Politics and Hispanic Studies) from the Ateneo de Manila University. In 2011, she received her Juris Doctor degree from Ateneo de Manila University School of Law. During law school, she interned at Romulo Mabanta Buenaventura Sayoc & de los Angeles then became an intern of Ateneo Legal Services Center’s Clinical Legal Education Program.
Mr. De Guzman graduated from San Beda College with a degree of Bachelor of Arts Major in Economics and received his law degree from San Beda College of Law. He is multilingual and is fluent in three languages: Chinese, Filipino, and English. He was admitted to the Philippine Bar in 2003.