Due Diligence and the Competitive Advantage

At the core of institutional investment grade commercial real estate transactions, is the due diligence process, where risks are evaluated and measured against a properties' performance. Here is a partial list of concerned topics and Ideas the site could cover.

• Lease Analysis - Evaluate responsibility for maintaining contracts, ability to obtain transference of municipal benefits, and status of appurtenances attached to the sale of the property.
• Property Repositioning - Establish best practices for pre-empting opposition, moving entitlement process forward and accommodating affordable housing, Zoning, etc.
• Legal Issues - Determine the optimum legal structure for conducting deals, scrutinize representations and warranties, and prepare for post contract issues.
• Tax Considerations - Get a primer on deferring tax consequences as well as accounting for costs related to acquisitions, improvements and meeting environmental requirements.
• Financial Metrics - Learn to analyze leases, insurance coverage, appraisals, debt loads and expenses in assessing the market value of commercial real estate.
• Physical and Environmental Evaluations - Determine how asbestos, oriented strand board, plumbing, electrical, engineering, vertical transport and architectural conditions affect property valuation.
• Market Evaluation - Location and external influences on future value analysis.