Pre-acquisition Investment Appraisal Due Diligence and Investment Analysis for Commercial Real Estate Acquisitions
Making decisions about acquiring commercial real estate involves significant considerations. Therefore, undertaking due diligence becomes paramount to mitigate potential financial and physical risks, instilling confidence in your investment choice. Pre-acquisition, typically initiated by individuals or organizations contemplating the purchase of a property interest, whether leasehold or freehold, aims to assess factors influencing the decision on the property’s suitability and eventual purchase price.
The due diligence process entails a comprehensive review and evaluation of crucial details that define the property’s nature, condition, estimated income, and operating expenses. Recognizing the importance of Investment Value and analysis, potential property buyers must ensure that the projected property price aligns with or surpasses their anticipated Target Rate of Return (TRR), providing sufficient income security. Investment Value analysis empowers investors to make informed purchasing decisions aligned with their investment objectives.
The value of large commercial real estate investments is directly tied to present and future income and capital growth. The property analysis report plays a crucial role in obtaining and comprehending financial details. Our RICS qualified and knowledgeable advisors offer opinions on valuation and due diligence, along with an analysis of potential investment returns.
Our key services in due diligence and investment analysis encompass:
- Location analysis
- Rental and Sales Comparable analysis
- Property income valuation and market research
- Condition assessment (identifying urgent defects and issues for further investigation)
- Investment Value advice
- Cash flow analysis and modeling
- Income/Vacancy risk analysis
- Competitive information comparing the property to relevant others
- Scenario modeling and sensitivity analysis based on client objectives
How we can assist:
We provide property investment analysis reports, and valuable tools for making financial decisions on whether to buy, hold, or sell. These reports are typically conducted alongside an RICS-certified professional.