Commercial real estate transactions and project management are always intense because there is so much to do. The matter isn’t always as simple as buying a commercial real estate property. You may buy a discounted property and refurbish it to upsell.

You may also be in the process of renovating your commercial real estate property to get better deals or reposition it as luxurious. There are many aspects to explore when managing, buying, and selling commercial real estate.

The problem here is that they often come with delays that can affect your planning and strategy. This blog will mention the most common timeline delays and address how you need to respond to them.

Types of Commercial Real Estate Timeline Delays

Following are the most common timeline delays to expect while buying, selling, or managing commercial real estate:

1. Negotiations

Negotiation is often an unavoidable delay that happens during the transaction process. You may get your target market interested in buying or selling the property (depending on your role), but that doesn’t mean the other party will agree to your conditions.

We recommend that our clients make the CHRE team part of the deal negotiation. Most CRE investors or sellers rely on negotiation experts. Therefore you also need our experts to communicate to ensure the deal suits your interests.

2. Nature-Led Delays

You may have planned construction or inspections weeks in advance, but there’s nothing you can do if the location suddenly gets hit with an unexpected storm. The only solution is to wait it out and hope the disaster will pass soon.

3. Inspection and Due Diligence

Commercial real estate buyers and sellers need to schedule an inspection and perform due diligence to evaluate the property. The process is generally straightforward; however, there is always a chance of unprecedented delays.

Rushing an inspection isn’t the right choice unless the inspector openly wastes time. It is best to communicate to know the reason for the delay and wait for the complete assessment.

4. Finalizing Financing

Securing lending isn’t always as easy as it sounds. Finding a lender who offers fair repayment terms and doesn’t make predatory loan offers takes time. Furthermore, several reputable lenders have become apprehensive after recent bankruptcies and prefer to take on financially secure clients.

Therefore, give yourself ample time to find the right choice and never choose an option out of desperation.

5. Miscommunication

Yes, even today, miscommunication remains a crucial cause of commercial real estate transactions or management delays. We have minimized the likelihood of miscommunication through digital planners, coordination software, etc.

However, contractors may still misunderstand your needs, and other parties may make mistakes. Most miscommunication-related delays are avoidable, so it is entirely up to you how you want to respond. If it doesn’t affect you that much, you can ask for compensation if it leads to loss or let it slide with a warning.

Wrapping Up

To sum up, there is a combination of excusable and inexcusable delays you’ll encounter during commercial real estate transactions or management. It is best to communicate your priorities and boundaries early on so the other party makes an effort to prevent inexcusable delays.

If you want to invest in commercial real estate in Rio Grande Valley, please contact the CHRE team. We have worked in the region for several years and can help you choose the most suitable investments for your portfolio.