Justin Rivers Real Estate Consulting
Consulting / Advisory / Development / Investment
Buying Commercial Property in Auburn, Alabama: Due Diligence Checklist
Commercial real estate can look attractive because of location, price, or current income, but the real decision depends on due diligence. Whether you are buying an owner-occupied building, investment property, redevelopment site, or commercial land in Auburn, Opelika, or Lee County, the property should be tested against your business plan before closing.
1. Confirm Zoning and Permitted Use
Verify that your intended use is allowed. Review zoning, overlays, parking, signage, setbacks, density, outdoor storage, drive-through rules, and any conditional-use requirements. Do not assume a prior use guarantees approval for a new one.
2. Review Access, Visibility, and Traffic
For many commercial uses, access can be more important than building size. Review curb cuts, signalized intersections, median access, turn lanes, traffic patterns, visibility, neighboring uses, and ease of entry and exit.
3. Evaluate Parking and Site Circulation
Parking count, ADA spaces, loading, delivery access, fire lanes, and internal circulation should support the intended use. A property with insufficient parking can create both operational and entitlement problems.
4. Confirm Utilities and Capacity
Check water, sewer, power, gas, stormwater, internet, and any special service requirements. Capacity matters for restaurants, medical users, industrial operations, redevelopment, and higher-density uses.
5. Review Physical Condition
Inspect roof, HVAC, structure, electrical, plumbing, paving, drainage, fire protection, elevators, building envelope, and life-safety systems where applicable. Deferred maintenance can materially change the real acquisition cost.
6. Analyze Environmental Risk
Depending on prior use, lender requirements, and property type, environmental due diligence may be appropriate. A Phase I environmental site assessment can help identify recognized environmental conditions that deserve further review.
7. Read Every Lease
For income-producing property, verify rent, lease term, renewal options, expense responsibilities, tenant credit, deposits, exclusives, termination rights, co-tenancy provisions, and any landlord obligations. Compare contract rent with current market rent.
8. Rebuild the NOI
Do not rely only on seller-presented income. Reconcile rent rolls, leases, tax bills, insurance, utilities, repairs, management, reserves, common-area expenses, and any recurring capital needs. Then calculate normalized net operating income.
9. Test Financing and Exit Value
Interest rate, amortization, required equity, debt-service coverage, and future cap rates all affect returns. Test conservative scenarios so the investment is not dependent on perfect rent growth or an aggressive resale assumption.
10. Evaluate Redevelopment Potential
Some commercial properties are more valuable because of future use than current operations. Review zoning, surrounding growth, land value, density, access, utilities, and demolition or renovation cost before assuming redevelopment upside.
Discuss a Commercial Acquisition
I help business owners, investors, and developers evaluate commercial real estate in Auburn, Opelika, and Lee County from both a brokerage and investment perspective.
Auburn commercial real estate | Auburn real estate investment | Development land | Contact Justin
Justin Rivers Real Estate
251-583-4486
311 N College St, Suite 203, Auburn, AL 36830