Commercial real estate can play a pivotal role in your business. It can give you the space that you need to develop your goods and services, appeal to consumers, and ensure growth all at the right price. But the logistics of safely securing a piece of commercial real estate is much more complex than looking at a property and handing over a check, and those who fail to be thorough and well informed throughout the process can find themselves in a bad situation.
The importance of due diligence
This is why it’s important to perform sound due diligence before taking on commercial real estate. In short, due diligence is the investigation and auditing of a piece of property prior to purchasing it. There are many aspects of due diligence, and it is imperative to analyze each of them.
While you’ll certainly want to assess characteristics of the property such as its location, the surrounding neighborhood, and the price of the property, you’ll want to take a deeper dive into every nook and cranny of the real estate. You’ll want to take into consideration any repairs that may be needed to buildings and the maintenance of the property, as well as any restrictive covenants that might hinder your business operations. You should also analyze any existing leases to get a better feel for existing clientele and look into environmental impacts of the property that might harm your business operations. Zoning laws might impact your business, too.
Too much information is just enough information
When making a major investment in commercial real estate, the best way to protect yourself is to have as much information as possible before proceeding with the transaction. That’s why your due diligence should be so thorough that there’s no stone left unturned when you make the decision whether to proceed or not.
We know that this and other processes involving commercial real estate can be daunting, though, which is why experienced legal teams like ours stand ready to assist. That way you have the guidance you need to ensure that your and your business’s best interests are as fully protected as possible moving forward.