Commercial real estate deal breakers

By Brian Edwards

Putting a commercial real estate deal together involves many hours of hard work, complex negotiations and details. Even with your best effort some deals will never fly for very substantial reasons.

However, here are some of the factors that result in aborted deals that I see from my side of the fence.

  1. Not enough parking spots for clients or employees or both.
  2. Truck access and turning radius not workable.
  3. A major physical deficiency such as the roof, heating or excessive interior or exterior wear & tear.
  4. Partners who don’t agree on the site selected, price to be paid or who just don’t seem to understand the whole process of buying commercial real estate.
  5. Lack of finances to complete the repairs or upgrades required to use the building as intended.
  6. Clients who don’t realize how commercial building inspections work and think that they will get the same detail and service for their commercial building as they did for their home inspection for much the same money.
  7. No clear understanding of the cost of operating the building.
  8. An obvious environmental concern such as a buried oil tank filler pipe in plain site, which should have been spotted during the site visit with the agent prior to the offer.
  9. An evasive vendor who can’t remember pertinent details or who seems genuinely surprised when I uncover a major problem such as the oil tank, or boilers that are much older than stated etc.
  10. An agent on the other side who doesn’t understand commercial real estate dealings.

Just some of the situations I have seen in the past couple of years that have resulted in no deal for the agent and disillusionment for the client.

Article by Brian Edwards M.A.A.T.O, B.C.Q, President of Westbrook Building Inspections Ltd. hope this helps and if you have any questions, please don’t hesitate to give me a call.

Century Office Building Conversion

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