When stepping into the complex world of commercial real estate, understanding the due diligence period is crucial. This is the window during which a buyer can investigate a property fully before committing—financially, legally, and practically. While the exact timeline varies, there are some common benchmarks to guide expectations.
What Is the Due Diligence Period?
The due diligence period begins once the purchase agreement (or lease) is signed and often the earnest deposit is paid. During this period, the buyer conducts comprehensive investigations—ranging from title searches to environmental checks—to ensure the property meets their needs. This process is sometimes referred to as the “feasibility” or “investigative” period.
Typical Timeframes You’ll See
Industry standards for commercial real estate due diligence generally fall in the 30 to 90-day window. Many sources cite this as the most common range:
That said, simpler, smaller transactions may conclude in 30 to 60 days, especially for well-documented, low-risk properties.
Why Some Deals Take Longer
In more complex scenarios—such as raw land development, zoning changes, or environmental remediation—due diligence can stretch to six months or more:
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Especially large or entangled transactions may extend the timeline to six months, based on complexity.
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Due diligence for raw land can sometimes take 6 to 18 months, particularly when governmental approvals and entitlements are involved.
Best Practices for Structuring Due Diligence for Commercial Real Estate
To effectively navigate this period, consider the following:
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Negotiate a clear timeline—typically 30–90 days for standard deals, but build in flexibility.
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Include an extension option allowing the buyer to extend the due diligence period—ideally without additional fees.
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Define permissible investigations broadly, including environmental assessments, surveys, title and zoning reviews, or any other necessary exams.
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Secure the right to terminate if the property proves unsuitable, as defined by the buyer’s discretion—this provides essential protection.
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Allow re-inspection shortly before closing—this ensures you’re not surprised by last-minute changes.
Summary Table: Typical Durations
| Type of Transaction | Typical Timeframe |
|---|---|
| Standard commercial property | 30–90 days |
| Simple, low-risk transactions | 30–60 days |
| Complex acquisitions or raw land | Up to 6 months or more |
| Entitlement-intensive deals | 6–18 months (esp. raw land) |
Final Thoughts
At Rocky Rinker, we know that every commercial transaction is unique. Whether you’re purchasing a multi-tenant office building or raw land that requires zoning changes, timing your due diligence carefully—and negotiating the right protective provisions—can make the difference between a smooth closing and unexpected setbacks. Contact us to tailor a due diligence strategy that aligns with your specific real estate goals.