Check before you commit

Due diligence

The problems that kill deals are almost never visible on the tour. Here's what to verify before you sign a lease — or close on a building.

Zoning & power checksPhase I environmentalFlorida-specific gotchas
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EducationDue diligence
Leasing

Before you sign a lease

Signing is fast; unwinding isn't. Six checks that take days now and save months later.

Confirm zoning and your use

Verify the district allows your operation — by right, not by assumption — and that the city will issue your business tax receipt at that address. Our zoning guides cover what each district permits.

Verify the power

Three-phase? How many amps at the panel, actually? An electrician's one-hour visit beats a listing flyer. Utility upgrades can take months and the lease clock won't wait.

Check sprinklers against your use

Storage height and commodity type drive sprinkler requirements. High-pile storage in a light-hazard building is a fire-marshal problem you inherit at move-in.

Pull the permit history

Open permits and code violations on the space become your headache once you occupy. A quick municipal records check is free.

Measure the space

Quoted square footage and usable square footage drift apart, especially in older buildings. You're paying by the foot — count the feet.

Ask for two years of CAM reconciliations

The actual operating-expense history tells you whether the NNN estimate is realistic or a teaser.

Buying

Before you close a purchase

A typical industrial purchase carries 30–60 days of due diligence. This is what fills them.

Title and survey

Easements, encroachments, and access rights live here. A truck route that crosses a neighbor's parcel without a recorded easement is a problem you want priced in — or walked from.

Phase I environmental

A records-and-site-visit review for contamination risk. Lenders require it; cash buyers should too, because it's also your legal protection as an innocent purchaser.

Property condition

Roof, structure, HVAC, electrical, and the slab, inspected by people who do industrial buildings. Roof replacement on a 50,000 SF warehouse is a seven-figure conversation in today's market.

Zoning verification letter

A written statement from the municipality of the district, permitted uses, and any open violations. Cheap insurance against "everyone assumed".

Income documents

For tenanted buildings: rent roll, every lease, and estoppels from every tenant confirming what they actually pay and claim. The rent roll is marketing until the estoppels agree with it.

Insurance quotes — early

Wind and flood coverage in South Florida can reshape a deal's economics. Get real quotes during diligence, not at closing.

Taxes at your basis, not the seller's

See the gotchas below — the seller's tax bill is not your tax bill.

Environmental

Phase I and Phase II, briefly

The two-step environmental process scares people more than it should. Most deals only ever need step one.

PHASE I Records + site visit

An environmental professional reviews historical records, databases, and walks the property looking for signs of contamination. No drilling, no samples. Two to four weeks, modest cost. Most properties pass.

PHASE II Soil & groundwater sampling

Ordered only when Phase I flags a concern — a former gas station, a plating shop, an old dry cleaner. Actual sampling and lab work; longer and costlier. The result either clears the site or defines the problem.

WHY Why you can't skip it

Environmental liability in the U.S. attaches to the owner, including new owners who didn't cause the problem. A clean Phase I performed before purchase is the core of the "innocent landowner" defense.

Local knowledge

South Florida gotchas

Four issues that surprise buyers from other markets — and even locals.

TAXES Property taxes reset on sale

Florida reassesses at market value after a sale, and caps on assessment increases don't transfer. Budget millage on your purchase price — not the seller's current bill, which can be a fraction of yours.

WIND Windstorm & flood insurance

Premiums vary sharply with roof age, construction type, and flood zone. An older roof isn't just a repair item — it's an insurance-pricing item. Quote before you're committed.

RECERT Milestone recertification

Older buildings in South Florida counties face mandatory structural and electrical recertification (historically at 40 years, now sooner in many jurisdictions). Ask when the building's next milestone is due and what the last report said.

SEASON Named-storm freeze

Insurers stop binding new coverage once a storm is named. A closing scheduled into hurricane season without bound insurance can slip weeks. Bind early.

Quick answers

Frequently asked

How long does due diligence take?

Leases: days to two weeks of checking, run in parallel with negotiation. Purchases: typically 30–60 days under contract, driven by the Phase I and lender timelines.

Who pays for inspections?

The buyer or tenant ordering them, almost always. It's the cheapest money in the deal — a few thousand dollars protecting a commitment of millions.

Do I need a Phase II?

Only if the Phase I identifies a recognized environmental condition. Most properties don't get one, and needing one isn't automatically a deal-killer — it's a pricing and liability conversation.

What's an estoppel and why do I care?

A tenant's signed confirmation of their lease terms. When buying a tenanted building, estoppels are how you verify the income is real. No estoppels, no certainty.

Keep reading

Under contract, or about to be?

We run these checklists on every deal we touch. Tell us where you are in the process and we'll flag what's still open.

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