Plain explanation
Commercial property review connects the site and buildings with leases, income, expenses, permitted use, access, systems, and market context. The depth of review should match the property type, whether retail, office, industrial, mixed-use, apartments, land, or another commercial use.
Why it matters
A commercial opportunity may appear attractive for one reason while carrying risk elsewhere. A structured review keeps physical, financial, legal, tenant, and operational questions visible and separates historical documents from projections.
What information to prepare
- Property description, parcel, surveys, plans, zoning, and access information
- Tenant schedule, leases, amendments, deposits, options, and notices
- Dated operating statements, tax bills, utility records, and capital history
- Inspections, environmental records, permits, violations, and service contracts
- Insurance information, claims history, security, and life-safety systems
- Written assumptions for vacancy, repairs, financing, reserves, and future use
Common mistakes to avoid
- Reviewing capitalization or price without checking the source numbers
- Ignoring lease options, expense responsibilities, or tenant concentration
- Assuming current use or future development is permitted
- Treating deferred maintenance as a simple cosmetic budget
- Presenting projections as if they were historical results
Questions to ask yourself
- Which documents support current income and expenses?
- What tenant, system, environmental, or access issue could change value or use?
- Which assumptions require inspection, legal, zoning, title, or financial review?