Performing due diligence is an essential step for commercial real estate buyers. The following is a checklist that covers some of the key areas to consider during the due diligence process:

1. Property inspection: Hire a licensed property inspector to perform a thorough inspection of the property, including the building structure, mechanical systems, electrical systems, plumbing, and other essential features.
2. Environmental assessment: Conduct an environmental assessment of the property to identify any environmental hazards or contamination, such as lead-based paint, asbestos, or hazardous waste.
3. Title search: Conduct a title search to ensure there are no liens or encumbrances on the property and that the seller has the right to sell the property.
4. Zoning and land use: Check the zoning and land use regulations to ensure that the property is suitable for the intended use.
5. Lease review: Review all lease agreements to understand the current rental income, lease terms, and lease renewal options.
6. Financial analysis: Review the financial statements for the property, including operating expenses, rental income, and capital expenditures.
7. Market analysis: Conduct a market analysis to determine the current market value of the property, the demand for similar properties in the area, and the potential for rental income growth.
8. Insurance review: Review the property’s insurance policies, including coverage for property damage, liability, and natural disasters.
9. Legal review: Review any legal documents related to the property, such as easements, covenants, and restrictions.
10. Tenant interviews: Conduct interviews with current tenants to understand their satisfaction with the property, any issues they have experienced, and their intentions to renew their leases.

Overall, a thorough due diligence process can help identify any potential risks or issues with the property and ensure that the purchase is a sound investment.