01 / Due diligence
Confirm what is being acquired
Identify the legal interest, title, permitted use, zoning, access, services, building condition and any material restrictions. Ask for the source and date of each document.
02 / Due diligence
Understand the income
Review leases, expiry dates, options, incentives, arrears, recoveries, vacancy and the evidence behind any proposed rent. Stress test changes in occupancy and costs.
03 / Due diligence
Test the costs and capital needs
Consider rates, insurance, maintenance, management, compliance, capex and environmental or remediation obligations. Check whether forecasts include realistic contingencies.
04 / Due diligence
Map the risks and decision rights
Understand ownership structure, financing, covenants, approvals, conflicts and exit assumptions. Record what remains unknown and who is responsible for resolving it.
Go to the source
Primary references.
For official guidance, start with ASIC investor information, AUSTRAC guidance and the relevant state or territory land, planning and building authorities.
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