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The Ultimate CRE Due Diligence Checklist

100+ items across financial, legal, physical, market, tenant, and operational analysis. Interactive tracker with data room organization templates.

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100+
Checklist Items
6
Categories
30-60
Days Typical Timeline
Free
Interactive Template
0 of 102 items (0%)

Financial Due Diligence

20 items
3 years historical operating statements Critical
Income statements showing revenue, expenses, and NOI trends
Current rent roll with lease abstracts Critical
All tenants, rents, lease dates, escalations, and options
Trailing 12-month P&L Critical
Most recent full year of financial performance
Current year budget vs actuals Important
Monthly budget comparison with variance analysis
Property tax bills (3 years) Critical
Tax assessments and any pending appeals or reassessment risk
Insurance policies & claims history Important
Current coverage, premiums, and any open/past claims
Capital expenditure history (5 years) Important
Major improvements, replacements, and deferred maintenance
Accounts receivable aging report Important
Outstanding tenant balances and collection history
Utility expense breakdown Nice to Have
Electric, gas, water, sewer costs and sub-metering details
CAM/NNN reconciliations Important
Common area maintenance charge histories and tenant reimbursements
Existing loan documents Critical
Mortgage terms, prepayment penalties, assumability
Appraisal report Critical
MAI appraisal with income, sales comp, and cost approaches
Security deposit schedule Important
All tenant security deposits and letter of credit details
Pending capital projects Important
Committed or planned capital expenditures and their funding
Revenue projections / pro forma Important
Seller's forward-looking financial model and assumptions
Tax returns (entity level) Nice to Have
K-1s or entity tax filings for income verification
Management fee structure Important
Current PM contract terms, fees, and termination provisions
Rent concession history Nice to Have
Free rent, reduced rent, or other concessions granted
Bad debt write-offs Nice to Have
Historical uncollectable rent and recovery patterns
Vendor contracts & service agreements Important
Landscaping, cleaning, security, elevator maintenance, etc.

Legal Due Diligence

18 items
Title commitment & exceptions Critical
Current title report with all exceptions, liens, and encumbrances
ALTA survey Critical
Current survey showing boundaries, easements, and improvements
Zoning confirmation letter Critical
Current zoning classification and permitted uses
All executed leases Critical
Complete lease files including amendments and guarantees
Phase I Environmental Site Assessment Critical
ASTM-standard environmental report (recent, within 180 days)
CC&Rs / HOA documents Important
Covenants, conditions, restrictions, and any association rules
Pending or threatened litigation Critical
Any lawsuits, claims, or disputes involving the property
Easement agreements Important
Access, utility, and any reciprocal easement agreements
Certificate of occupancy Critical
Current CO and any conditional permits or variances
ADA compliance documentation Important
Accessibility assessments and any required remediation
Ground lease (if applicable) Critical
Terms, rent resets, purchase options, and lender consent
Building permits history Nice to Have
All permits issued and any open/unfinished permits
Estoppel certificates Critical
Tenant confirmations of lease terms, rent, and deposits
SNDAs (Subordination agreements) Important
Subordination, non-disturbance, and attornment agreements
Entity formation documents Important
Seller's authority to convey, operating agreements
Warranties & guarantees Nice to Have
Roof, HVAC, elevator, and other system warranties
FIRPTA withholding status Important
Foreign seller certification for tax withholding
Parking agreements Nice to Have
Parking ratios, reserved spaces, and any parking agreements

Physical / Environmental

18 items
Property Condition Assessment (PCA) Critical
ASTM E2018 assessment of all building systems and components
Roof condition report Critical
Age, condition, warranty status, and remaining useful life
HVAC systems assessment Critical
Age, capacity, efficiency, and maintenance history
Elevator inspection reports Important
Current inspection certificates and maintenance contracts
Fire & life safety systems Critical
Sprinklers, alarms, extinguishers, and compliance status
Plumbing systems review Important
Age, material, condition, and any known issues
Electrical systems assessment Important
Switchgear, panels, capacity, and code compliance
Structural assessment Critical
Foundation, framing, load-bearing elements, and seismic
Asbestos / lead paint survey Critical
Hazardous materials testing for pre-1980 buildings
Mold assessment Important
Visual inspection and air quality testing if warranted
Parking lot / garage condition Important
Surface condition, striping, drainage, and structural integrity
Landscape & irrigation Nice to Have
Condition and maintenance requirements
Building envelope assessment Important
Windows, curtain wall, waterproofing, and facade condition
Phase II ESA (if triggered) Critical
Soil/groundwater sampling if Phase I identified RECs
Energy audit / ENERGY STAR score Nice to Have
Energy efficiency assessment and benchmarking
As-built drawings Important
Architectural, structural, MEP as-built plans
Flood zone determination Critical
FEMA flood map review and insurance requirements
Seismic risk assessment Important
PML study for properties in seismic zones

Market Analysis

16 items
Comparable sales analysis Critical
Recent sales of similar properties within the submarket
Comparable lease analysis Critical
Market rents, TI, and concessions for competitive properties
Submarket vacancy & absorption Critical
Current and historical vacancy trends and net absorption
Supply pipeline / new construction Important
Planned and under-construction competitive properties
Demographic analysis Important
Population growth, income levels, employment trends
Major employer analysis Important
Top employers in the area and their growth/stability outlook
Transportation / accessibility Nice to Have
Highway access, public transit, walk/bike scores
Rent growth projections Important
Market rent forecasts from CoStar, CBRE, or JLL
Cap rate trend analysis Important
Historical and projected cap rate movement in the submarket
Competitive property tour Nice to Have
Physical tour of competing properties and their amenities
Economic development pipeline Nice to Have
Planned infrastructure, mixed-use, or government projects
Interest rate environment Important
Current rates, forward curve, and impact on exit cap rates
Tax incentive / opportunity zone Nice to Have
TIF districts, tax abatements, OZ designation
Crime statistics Nice to Have
Local crime data and trends for the property area
School ratings (multifamily) Nice to Have
Local school quality ratings for residential properties
Retail co-tenancy requirements Important
Anchor tenant clauses and co-tenancy provisions for retail

Tenant Analysis

14 items
Tenant credit analysis Critical
Financial strength, D&B ratings, public filings for major tenants
Lease rollover schedule Critical
Expiration timeline by SF and revenue with renewal probability
Tenant concentration analysis Critical
% of revenue from top 5/10 tenants and industry diversification
Below / above market lease analysis Important
Which tenants are paying below or above current market rates
Tenant improvement obligations Important
Unfunded TI commitments and upcoming renewal TI exposure
Renewal options & terms Important
Option rents (fixed vs FMV), notification periods
Expansion / contraction rights Important
ROFO, ROFR, termination options, and contraction clauses
Tenant sales reports (retail) Important
Percentage rent thresholds and tenant sales performance
Sublease inventory Important
Any subleased spaces and their impact on direct vacancy
Tenant satisfaction survey Nice to Have
Recent survey results or informal feedback from tenants
Lease guarantee analysis Important
Corporate vs personal guarantees and their enforceability
Rent escalation schedule Important
Fixed, CPI, or percentage-based escalations for all leases
Assignment / subletting rights Nice to Have
Tenant rights to assign or sublet and landlord consent requirements
Tenant industry outlook Nice to Have
Industry health assessment for major tenant sectors

Operational Review

16 items
Property management agreement Critical
Current PM contract, fees, scope, and termination provisions
Staffing & payroll analysis Important
On-site staff, roles, compensation, and benefit costs
Service contracts inventory Important
All vendor contracts with terms, costs, and cancellation provisions
Work order / maintenance history Important
12-month work order log showing types, frequency, and costs
Technology systems audit Nice to Have
Building management, access control, and IT infrastructure
Amenity assessment Nice to Have
Fitness center, conference rooms, common areas condition
Security systems & protocols Important
Camera systems, access control, security staffing
Emergency preparedness plan Important
Fire, weather, and evacuation procedures
Signage inventory & rights Nice to Have
Building, monument, and tenant signage agreements
Telecom / fiber infrastructure Nice to Have
Internet providers, fiber availability, and rooftop leases
ESG / sustainability programs Nice to Have
Green certifications, energy programs, and sustainability initiatives
Capital improvement plan Important
Multi-year CapEx plan with priorities and estimated costs
Insurance claim history Important
5-year claims history and loss runs
Contractor performance reviews Nice to Have
Quality and reliability of current service providers
Property management software Nice to Have
Current PM system, data migration requirements
Marketing materials & branding Nice to Have
Website, brochures, and marketing collateral

Data Room Organization Template

Organize your due diligence documents using this proven folder structure

📁 01_Financial/
    📄 Operating_Statements_2023-2025.xlsx
    📄 Rent_Roll_Current.xlsx
    📄 Budget_2026.xlsx
    📄 Tax_Returns_Entity.pdf
    📄 AR_Aging_Report.xlsx
📁 02_Legal/
    📄 Title_Commitment.pdf
    📄 ALTA_Survey.pdf
    📄 Zoning_Letter.pdf
    📁 Leases/
        📄 Tenant_A_Lease.pdf
        📄 Tenant_B_Lease.pdf
📁 03_Physical/
    📄 PCA_Report.pdf
    📄 Phase_I_ESA.pdf
    📄 As_Built_Drawings.pdf
📁 04_Market/
    📄 Comp_Sales_Analysis.xlsx
    📄 Market_Report_CoStar.pdf
📁 05_Tenant/
    📄 Tenant_Credit_Reports.pdf
    📄 Rollover_Schedule.xlsx
📁 06_Operations/
    📄 PM_Agreement.pdf
    📄 Service_Contracts.pdf
    📄 Insurance_Policies.pdf

Frequently Asked Questions

What should be included in CRE due diligence?

Thorough CRE due diligence covers six areas: financial analysis (rent rolls, P&L, tax returns), legal review (title, zoning, environmental), physical inspection (building condition, systems), market analysis (comps, demographics), tenant analysis (credit, lease terms), and operational review (management, contracts). CREx OS automates much of the data collection.

How long does commercial real estate due diligence take?

Standard CRE due diligence takes 30-60 days. Complex portfolios may require 90+ days. Order third-party reports (Phase I ESA, appraisal, PCA) immediately upon going under contract as these typically take 2-4 weeks.

What is a data room in commercial real estate?

A data room is an organized digital repository containing all transaction documents. Use the folder structure above to organize financials, leases, environmental reports, title documents, and building plans. Well-organized data rooms accelerate due diligence and build buyer confidence.

Streamline Your Due Diligence Process

CREx automates data collection and analysis for faster, more thorough CRE acquisitions.

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