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CRE Due Diligence: The Benefits of Bundling Third-Party Reports

by | Mar 9, 2021

Due diligence is a vital component of real estate transactions

Commercial real estate is a high-value investment, so conducting proper due diligence is critical on all sides of a transaction. There are many areas of the due diligence process, including assessing proposed project feasibility, conducting market studies, construction monitoring, obtaining third-party reports on the building and site, and more.

Buyers of commercial real estate seek due diligence services to confirm the value and condition of their property in order to reduce their investment risk. Lenders typically rely on third-party reports to confirm that a property is sound and to identify any necessary spending, both upfront and ongoing throughout the term of the mortgage.

There are several benefits to using a single source for bundled third-party reports.

  • One point of contact adds efficiency by streamlining the due diligence process and expediting completion.
  • Only one coordinated on-site visit is required for information collection because data can be used in all reports.
  • When all reports are developed from a single set of data, it is easier to ensure the reports are consistent and use the same physical descriptions of the property such as land and building size, parking spaces, etc.
  • One touch-point for all reports reduces communication and project management time.
  • Time spent on data gathering and analysis is shared across all third-party reports.
  • Economies of scale can help reduce report costs and expedite delivery.

BBG offers comprehensive due diligence services, including the following third-party reports typically required by lenders include:

  • Property appraisal (or valuation) or desktop valuation.
  • Property condition assessment (PCA).
  • Environmental site assessments (ESAs).
  • ASHRAE commercial building energy audits.
  • Construction risk management.
  • ALTA surveys.
  • Zoning compliance reports.
  • Advisory services.

Since BBG’s sole focus is due diligence, clients can count on third-party reports that objectively and consistently assess the value, use and feasibility of real estate assets. BBG is one of the only national firms offering comprehensive due diligence services with the ability to bundle third-party reports for maximum efficiency.