Florida’s commercial real estate market moves fast, and opportunities can disappear just as quickly as they appear. That’s why a smart investment requires a clear strategy and careful execution. In Step 1 of Buying a Commercial Property in Florida, we covered the importance of pre-acquisition planning, including everything from defining your goals to securing financing pre-approval. In Step 2, we walked through the offer and contract phase, including Letters of Intent and negotiating a strong Purchase & Sale Agreement. 

Now, in Step 3, we move into one of the most critical stages of the process: due diligence and financing. This is where you confirm that the property is legally sound, financially viable and worth the investment before committing to closing.

Here are several actions every Florida investor should take before moving forward with a commercial investment:

Conduct physical inspections – Schedule thorough inspections to uncover any hidden issues that could affect the property’s value or usability. Common areas of review include:

  • Roof and structure – Check for age, leaks and overall condition.
  • HVAC systems – Ensure heating and cooling systems are operational and up to code.
  • ADA compliance – Confirm accessibility requirements are met.
  • Parking lot and exterior – Assess safety, drainage and maintenance needs.
  • Environmental hazards – A Phase I Environmental Site Assessment (ESA) is often required by lenders to identify potential contamination or liability.

Undergo a thorough financial review – A property’s income stream is just as critical as its physical condition. Work with your attorney and CPA to review rent rolls and tenant leases, operating expenses and maintenance contracts, tax history and assessments, as well as actual versus projected income. This step ensures the numbers align with your investment goals.

Review title and zoning classifications – Your attorney and title company will confirm that the property has a clean title and is free of liens, easements or unresolved claims. They will also confirm current and future zoning classifications to ensure the property supports your intended use. Overlooking these details can create costly roadblocks after closing.

Order an appraisal and finalize underwriting – If financing the investment, your lender will order a commercial appraisal to verify the property’s value. Be prepared to provide detailed documentation to keep the loan process moving smoothly. Underwriting may require:

  • Personal guarantees from the borrower
  • Submission of business financial statements
  • Proof of reserves for closing and operating costs

Your due diligence period is not just a checklist—it’s leverage. If inspections or financials raise concerns, you may be able to renegotiate terms or walk away without penalty, depending on the contingencies in your contract.

Secure Your Investment with Confidence

During this phase of a commercial property acquisition, smart investors separate winning deals from risky ones. Our real estate attorneys at the Law Offices of Alex D. Sirulnik, P.A. and ADS Titles Services, Inc. work closely with buyers, lenders and brokers to protect your investment at every stage.

Contact us today to schedule a consultation and make sure your next commercial purchase in Florida stands on solid ground.