RUN AN ADDRESSCOMMERCIAL · COLORADO
A commercial deal is underwritten. Not toured.
The building is the easy part. Income, leases, environmental history and the shape of the debt decide whether it is a good decision, and all four are answered on paper.WHAT ACTUALLY DECIDES IT
Six files, before the walkthrough.
- 01THE NUMBER
It is underwritten, not toured.
Value follows income, expenses and the terms of the leases in place. A pretty building with a bad rent roll is a bad building.
HOW IT GETS ANSWEREDRent roll, T-12, estoppels - 02TENANTS
Who actually pays, and until when?
Lease length, escalations, renewal options and who covers taxes, insurance and maintenance change the number more than the finishes do.
HOW IT GETS ANSWEREDLease abstracts, NNN vs gross - 03ENVIRONMENTAL
What happened here before?
A Phase I is standard for a reason. Dry cleaners, service stations and light industrial use leave a file, and lenders will not close without it.
HOW IT GETS ANSWEREDPhase I ESA, prior use history - 04USE
Is your use allowed, or grandfathered?
Zoning, conditional use permits, parking counts and ADA obligations decide whether your plan is legal in that box.
HOW IT GETS ANSWEREDZoning verification, CO, parking ratio - 05FINANCING
Recourse, term and a balloon.
Commercial debt is shorter, often recourse, and usually balloons. The exit is part of the purchase decision, not a later problem.
HOW IT GETS ANSWEREDTerm sheet, DSCR, prepayment terms - 06CONDITION
Systems, roof, and deferred capital.
A property condition assessment prices what the seller stopped doing. That number belongs in the offer, not the surprise column.
HOW IT GETS ANSWEREDPCA, roof and HVAC age, capital plan
General Colorado practice, not advice about a specific property. Your lender, attorney and CPA govern their own lanes.
WHO READS IT
A person, the same day.
Robert has worked residential, land and commercial. The value is that one property gets read as an asset, a risk and a financing at the same time, by one person.Robert S. An · Broker Associate · Compass · Colorado licence 100084328 · licensed since 2019“He was attentive, thoughtful, and quick to respond throughout the process. He never let the details slip through the cracks.”TAPR31215 · BOUGHT, ARVADAREAD THE REST OF THE REVIEWS →
ASKED BEFORE EVERY ONE OF THESE
The four questions that come first.
- How is buying commercial property different from buying a house?
- The income is the asset. Value follows net operating income and the capitalisation rate rather than comparable sales, so the rent roll, the leases and the expense history decide the price more than the finishes do.
- What is a Phase I environmental site assessment and do I need one?
- It is a records and site review for signs of contamination. Lenders commonly require one on commercial collateral, and it is also how a buyer preserves federal liability defences. A finding sends it to a Phase II, which is sampling.
- How much do I need down on a Colorado commercial property?
- More than a house, and it varies by asset and lender. Commercial debt also carries shorter terms with balloons and often a personal guarantee, so the exit and the refinance date belong in the decision from the first day.
- Can I run my business out of any commercial building?
- No. Zoning, the certificate of occupancy and any recorded use restriction decide the permitted use, and a change of use can trigger parking, accessibility and life-safety upgrades that cost more than the building work.
THE NEXT MOVE
Bring the address and the rent roll.
Send what you have. Robert names which of the six files decides this one, and what it costs to answer. No valuation, no obligation.STRAIGHT TO ROBERT