Commercial Due Diligence

Perhaps the three most important words in Real Estate are location, location, location. For most businesses or property investors, these words are of paramount importance. An investor wants to purchase property in an attractive, busy area to try to quickly maximize the value of her investment. Others may want to invest less and seek areas where growth is expected in the future. Operators of businesses such as automobile dealerships, clothing, department stores, fabrics, and design accessories, food wholesalers, furniture and home fixtures, frequently want to be close to their competitors so that consumers can shop around and compare. Other retailers need to be closer to their targeted market segment and offer easy access from and to residential areas.

Marketing oriented requirements, combined with other requirements for a particular use, whether required by the business or demanded by local ordinances, create daunting challenges. At Black Label Commercial Group, we are able to assist our clients in the rigorous demands of the due diligence or feasibility process when looking to develop a property.

Site development considerations include:

  • Availability of utilities

  • Environmental issues

  • Existence or absence of improvements

  • Development costs (for raw land)

  • Repair and improvements costs (for properties with improvements)

  • Road access and parking

  • Room for expansion

Improvement considerations include:

  • Building size, condition, and suitability for client’s requirements

  • Rental rates for similar properties

  • Vacancy rates in the immediate market

  • Presence or absence of long-term tenants

  • Whether market lenders can finance the property acquisition and/or proposed improvements

  • Permitting issues for intended use, even if the proposed use is like the pre-acquisition use

With many years of combined experience and over 500 million in closed transactions, we are highly qualified to assist our clients through these complicated topics.

Commercial Real Estate Due Diligence

Our goal is to maximize value for each of our clients by utilizing our expertise to guide them through any situation that may arise during a transaction.