Things that can break a deal

10/6/20232 min read

Here are 3 main things that can break a commercial real estate deal:

  1. Financing: Commercial real estate deals are often very complex and involve large sums of money. If the buyer is unable to secure financing, the deal will likely fall through.

  2. Due diligence: Commercial real estate buyers typically have a due diligence period during which they can inspect the property and review all relevant documents. If the buyer discovers any problems with the property during due diligence, they may back out of the deal.

  3. Contingencies: Most commercial real estate deals involve contingencies, such as the buyer obtaining financing or the seller obtaining the necessary permits. If any of the contingencies are not met, the deal can fall through.

In addition to these three main things, there are a number of other factors that can break a commercial real estate deal, such as:

  • Zoning issues: If the property is not zoned for the buyer's intended use, the deal may fall through.

  • Environmental concerns: If the property is contaminated with hazardous materials, the deal may fall through.

  • Title issues: If the seller does not have clear title to the property, the deal may fall through.

  • Personality clashes: Commercial real estate deals often involve multiple parties with different interests and goals. If the parties are unable to get along, the deal may fall through.

It is important to be aware of all of the potential risks involved in commercial real estate deals and to take steps to mitigate them. By working with a qualified commercial real estate attorney and other professionals, you can increase your chances of closing a successful deal.

Here are some tips for avoiding common deal-breakers:

  • Do your due diligence: Hire a qualified inspector to inspect the property and review all relevant documents.

  • Get pre-approved for financing: This will give you an idea of how much money you can borrow and what your monthly payments will be.

  • Be clear about your contingencies: Make sure that all of your contingencies are listed in the purchase agreement and that you have a clear understanding of how they will be handled.

  • Be flexible and willing to compromise: Commercial real estate deals often involve negotiation. Be willing to compromise on some things in order to get the deal done.

  • Work with a qualified team: Surround yourself with a team of experienced professionals who can help you with the purchase process.

By following these tips, you can increase your chances of closing a successful commercial real estate deal.