Real Estate Due Diligence Checklist22 February, 2021
The faster, easier, secure way to prep your commercial real estate deal.
A commercial real estate transaction typically requires analysis of a trove of documents to ensure a seller or buyer is receiving optimal value. The due diligence team prepares a brief that examines multiple aspects of the project:
- Project profile and physical assets, like the number of units and square footage and the furnishings and equipment
- Financial health, including rental history, tax status, insurance, vendor and service contracts, government permits, and other data
- Market viability, with comparisons of revenues and status of comparable properties in the area
- Investment value, prepared to allow tiered, dated returns to an investment group
Properly executed, a real estate project due diligence brief will accurately establish the value of the project and support its transaction price - or provide the basis for renegotiating a more realistic price.
Due Diligence requires secure collaboration.
A due diligence brief typically requires collaboration among a team of financial analysts, attorneys, and project managers. During the process, the team receives input from company officials as well as third parties like banks, contractors, municipal tax and planning departments. While some input is a matter of public record, many documents are confidential in nature, as is the analysis process.
A Real Estate Due Diligence Checklist speeds the process.
While the content of a commercial real estate due diligence brief varies based on the seller and buyer, the specifics of the project and its financial history, the terms of the offer, the structure of the filing and the points it must address are similar.
A “Real Estate Due Diligence Checklist” provides preparers with an organized approach that ensures all salient points are addressed and that the offer is properly documented.
ShareVault to the rescue!
ShareVault has created a Due Diligence Checklist for real estate that ensures a brief is well-organized and complete and that collaboration among parties is secure:
- Instant organization: Simply upload the ShareVault Due Diligence Checklist to a ShareVault virtual data room. The document will automatically create a “Table of Contents” with folders for each item on the list – your brief is instantly organized!
- Speed: To speed the review and analysis process, ShareVault features accelerated document review functionality
- Access: Team members can access documents in a ShareVault secure virtual room from any device and any web browser with the proper viewing permissions, without the need of your company’s IT department involvement
- Security: Since many due diligence documents are confidential, team members store the Checklist and documents in a ShareVault secure virtual data room. To further ensure access security, ShareVault provides team leaders with a set of permissions that control access to specific or all documents
- Flexibility: With ShareVault’s unique architecture and controls over access, a commercial real estate due diligence brief can be organized to support viewing or collaboration among multiple parties or counterparties during the early phases of the deal
- Built-in Translator: If desired, the checklist can be displayed in multiple languages.
ShareVault’s Due Diligence Checklist is field-tested
ShareVault’s Due Diligence Checklist has been utilized successfully by dozens of companies. Our real estate clients include Grubb & Ellis, CNL, Pennsylvania Real Estate Investment Trust, CKW Partners, Integra Realty, Sheldon Good, KDF Communities, and other industry leaders.
Focus on the deal, not the process!
The value of a great commercial real estate due diligence team is their ability to examine, analyze and evaluate. ShareVault supports your effort with a Real Estate Due Diligence Checklist that ensures your brief is comprehensive, a virtual data room and permissions to ensure security, and document processing functionality that speeds the entire process.