CRE Due Diligence Checklist

88 items across 8 categories. Check items as you complete them — progress saves automatically in your browser.

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Property inspection — structural, mechanical, electrical, plumbing, roof HVAC system inspection and service records Roof inspection and remaining life estimate Elevator inspection reports (if applicable) Parking lot condition and count verification ADA compliance survey and remediation estimate Deferred maintenance estimate from inspector 5-year capital expenditure forecast Utility service adequacy review (power, water, sewer) Current ALTA/NSPS survey Seismic assessment (Pacific Northwest — risk zone review) Existing as-built drawings and plans Americans with Disabilities Act structural audit Sprinkler system inspection and certificate

Current rent roll (signed, dated, with all amendments) Trailing 12-month operating statement (T-12) Year-end operating statements — last 3 years Current-year budget vs. actuals Accounts receivable aging schedule Security deposit ledger Tenant delinquency history (12 months) CAM reconciliations — last 3 years Utility bills — last 12 months Property management agreement All service and vendor contracts Insurance policies and loss runs (3 years) Property tax bills — last 3 years Special assessments or pending levies Pro forma income and expense assumptions reviewed

All executed leases and every amendment / addendum Estoppel certificates — request from each tenant SNDA agreements (Subordination, Non-Disturbance, Attornment) Co-tenancy clause review Exclusive use provision review Lease expiration and rollover schedule Renewal, expansion, and termination option review Purchase option or ROFR / ROFO review Assignment and subletting restriction review Personal guaranty and guarantor creditworthiness Percentage rent provisions and sales data (if applicable) Anchor tenant lease review (if applicable) Tenant credit review — D&B, financials, or public filings

Preliminary title commitment (20-day ALTA) CC&Rs, easements, and encumbrances review REA (Reciprocal Easement Agreement) review Parking easements and shared access agreements Ground lease review (if applicable) Seller entity documents (articles, operating agreement, authority) UCC lien search on seller entity Pending litigation or judgment search Zoning verification and certificate of occupancy Outstanding permits, violations, or code enforcement actions Legal description and APN verification Any restrictions on use or density

Existing loan documents (note, deed of trust, loan agreement) Prepayment review — yield maintenance, defeasance, lockout, step-down Loan assumption qualification and lender approval process CMBS / special servicer consent requirements Insurance requirements under loan documents Reserve accounts — balance and release conditions Lender escrow and impound requirements Confirm no default or notice of default

Phase I Environmental Site Assessment (ASTM E1527) Phase II Environmental Study (if Phase I recommends) Underground storage tank (UST) disclosure and registry check Above-ground storage tank (AST) disclosure Asbestos-Containing Materials (ACM) survey Lead-based paint survey (pre-1978 buildings) Mold assessment LUST (Leaking Underground Storage Tank) registry check Wetlands, critical areas, and shoreline jurisdiction review Stormwater and NPDES permit review

Confirm assessed value and current tax rate Pending reassessment or appeal Special assessment districts (LID, ULID, BID) Confirm no delinquent taxes Washington REET calculation and exemption review 1031 exchange eligibility and timing confirmation Depreciation and adjusted basis analysis Recapture tax estimate at sale

Comparable sales (last 12–24 months, 5-mile radius) Comparable lease comparables — market rent verification Submarket vacancy and absorption data Anchor tenant traffic counts (retail) Competing properties under construction or approved Demographic analysis (trade area, income, daytime population) Traffic counts — WSDOT or city data Municipality zoning, development plan, and annexation review

This checklist is a general guide and may not cover every item relevant to a specific transaction. Due diligence requirements vary by property type, size, location, and transaction structure. Consult your attorney, lender, and licensed inspectors.

Kidder Mathews

Swanson King Team

Sales, acquisitions, 1031 exchanges, and special-asset assignments across the Pacific Northwest.

(206) 296-9600
swansonking@kidder.com
601 Union Street, Suite 2700
Seattle, WA 98101

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