How to buy CRE with contingency on filling vacancy

Question

How does one go about making an offer on a commercial space that is becoming vacant shortly, such that if I cannot find a qualified tenant to fill the vacancy that I can walk away from the deal? And how does one even market the space if you do not even own it yet? Trying to avoid at all costs having a space that is empty on day one.

Dustin Tucker · Answer

I don't believe that you can get a specific contingency on vacant space for CRE, but typical due diligence is 60-90 days with 1 or multiple 30 day extensions. Once you have the property under contract, go market to local businesses to find your replacement tenant. I know of investors who contracted on a 80% vacant property and leased over 50% of it during due diligence. As long as you are in your due diligence contingency you can back out with minimal expense.

How to buy CRE with contingency on filling vacancy

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