Commercial transactions are often more complex and less standardized than residential transactions. Important differences may include:

  • Longer negotiation periods
  • Greater emphasis on property income
  • Detailed lease terms
  • Environmental concerns
  • Zoning and permitted-use issues
  • Business-specific improvements
  • Financing based partly on property performance
  • More extensive due diligence
  • Fewer standardized contract terms

The suitability and value of a commercial property often depend on the buyer’s or tenant’s intended use.