The leverage of working with our firm is that we understand both the local market and the national market. We can increase the property value and address the return on investment for your business. The fundamental of due diligence of commercial real estate in Louisville is analyzing the physical and environmental state of the property.
Physical due diligence
The origin of structural consultancy is to understand the engineering implications of acquiring the property. The details include the following aspects:
Examining the property’s status
The engineer compares the property’s current condition with the original plans and specifications. It extends to the bone of the construction by digging through the property’s history to calculate how the rent roll fits into the property’s revenue-generating ability.
The concerns of one consultant are not enough in bringing together the full picture of the building’s value. Each inspector evaluates their niche of specialization to create a complete circle picture free of facades and assumptions. These professions could be the structural consultant and financial consultant.
Commercial real estate usually requires a certain degree of renovation. A unit may need new flooring, cabinets, countertops, or paint walls. The construction team will bring together a budget that gives you insight into how much you may need to renovate. The comprehensive budget of renovation will also help you plan your revenue generation schemes for a systemic growth of the business.
Properties with vacant lands often have higher asking prices because of the potential of developing additional buildings. The aim of physical due diligence of commercial real estate in Louisville is to determine the possibility of growth or decline. This report may help you make sense of buying a property at higher market value when you understand the different options of its development.
The consultancy team will also help you determine whether you need to develop the additional property to fit into the area’s compliance regulations. The guides will explain how you can fit into the growing trend of the region by enacting modern buildings.
Environmental due diligence
Environmental remediation is a significant burden on the cost of the property. Newbank analyzes the environmental compliance of the field to highlight non-conforming applications and conditions that hinder the building’s use. A feasible project alleviates the financial burden and offers lucrative incentives to developers, such as in the form of a tax break. An environmental due diligence practice includes the following procedures:
This process is otherwise known as the phase I report and usually details the historical use of the property. The report aims to determine the contamination level of past features and the best remediation steps for the current state.
Phase II includes testing the groundwater and soil to find the root causes of issues that arose in Phase I.
Newbank runs months-long due diligence researches to determine the lifecycle of the investment. We maintain laser focus in the speed of execution so that you have a realistic analysis of the property value.
Due Diligence Commercial Real Estate Louisville
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