The commercial lending process takes much longer. It involves much more upfront costs that include property appraisals, inspections, and commitment fees. When the purchaser underestimates the time and costs, an entire sale can be ruined by pushing it back further than the owner is willing to go.
OVERSPENDING ON REPAIRS AND IMPROVEMENTS
There may be a reason a great location has a property up for sale. You need to seriously vet and get multiple bids on what any potential repairs will be. These are often underestimated and cost companies more down the line then they originally planned. Fixing the property too much can also move back your move-in date, requiring you to find temporary office space while the many improvements take place. A lot of times it’s just simply not worth the time, effort, and money to take on a giant project like that.
NOT DOING PROPER LEGAL D ER LEGAL DUE DILIGENCE
There are a ton of mistakes that can be made at this stage. First, you need to make sure the space can be used commercially for your industry. Then the smoke detectors and fire alarms need to be fully functioning. Some areas may require you to have a fully working irrigation and sprinkler system depending on whether you have grass. If you have any tenants they may need to get Certificates of Occupancy for their businesses. Those are just a couple of examples. You need a real estate lawyer to properly navigate all of them.
CHOOSING THE WR G THE WRONG BROKER
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