DUE DILIGENCE

Real estate due diligence is the investigation or audit of the leases and financials of a real property in preparation for a financial investment. Efficient and timely due diligence is critical to successful commercial real estate investment and should be undertaken prior to any commercial real estate acquisition. Nearly every transaction would be well served by undergoing rigorous due diligence.

However, evaluating the true value of any commercial project is an intricate undertaking. From complex lease agreements and expiration dates to insurance costs and real estate taxes, a wide array of variables often prohibit the interested parties from fully understanding the true value of a property.


Benefits
  • Precise financial projections
  • Expose any potential issues with the project
  • Discover any leases allowing the tenant to vacate the lease
  • Verify the collectability of rents, percentage rent, and expense recoverability

A TRUSTED THIRD-PARTY

The commercial real estate due diligence process is tedious and painstaking work. However, any decision about the acquisition, management or underwriting of a commercial asset demands a full and impartial understanding of the project's potential value; a thorough and detailed analysis of a project's financials is the only manner by which a prospective buyer may attain said understanding. Both the novice and the knowledgeable stand to benefit from turning to an experienced and reputable third-party expert that can provide an honest assessment of the given project's financial health.

THOROUGH. COMPLETE. DEPENDABLE.

Grant & Lewis provides thorough, complete and dependable financial due diligence to all parties active in the real estate market. Dedicated to the highest standards of client satisfaction, we treat each transaction as if our own capital were in question.

A due diligence package from Grant & Lewis contains:

  • Projected budget and summary of historical financial statements
  • Income, including current and future base rent, percentage rent, additional rent and miscellaneous income
  • Reimbursement income and methodology
  • Expenses, including real estate taxes, operating expenses, tenant improvements and leasing commissions

HOW DOES IT WORK?

Grant & Lewis contacts the seller and requests the necessary financial documentation. The data is then entered into The Lease Toolkit, Grant & Lewis's proprietary web-based application, and compared to the seller's or broker's current representations and pro forma calculations. The results are then reviewed, compiled and presented to the prospective buyer in the form of a comprehensive report, with a clear executive summary indicating any and all potential key point indicators uncovered during the process.