The commercial property due-diligence checklist

Commercial due diligence is where fortunes are protected. Residential buyers check the kitchen; commercial buyers check the cash flow, and cash flow hides its problems well.

Title and approvals

• Chain of title for 30 years, not 12
• Occupancy certificate matching actual use (a retail unit operating as F&B without conversion is your liability tomorrow)
• Sanctioned plan deviations — measure the actual carpet area yourself

Tenancy quality (for pre-leased assets)

• Lock-in remaining vs. your loan tenure
• Escalation clauses in writing, security deposit actually held
• Who pays for fit-out restoration at exit?

The technical layer

Structural audit, fire NOC currency, power sanctioned load vs. tenant requirement, and HVAC age — a chiller replacement can erase a year of yield.

Tax and exit

Model your net yield after property tax, non-occupancy charges and maintenance. Then stress-test the exit: who is the next buyer for this asset, and what cap rate will they demand?