Commercial Due Diligence Calculator

CRE DD costs $25k–500k+ depending on asset complexity.

PCA

Environmental

Survey

Appraisal

Engineering

Legal

Other DD

Total DD cost

$97,500

Third-party total

$62,500

Legal share %

0.4%

How the math works

Third party = PCA + Phase I + survey + appraisal + engineering + other. Total = + legal.

$12k + $5.5k + $8k + $12k + $10k + $15k + $35k = $97,500 total DD cost.

How to Use

Enter pca.
Enter environmental.
Enter survey.
Enter appraisal.
Enter engineering.
Enter legal.
Enter other dd.
Read total dd cost.

Frequently Asked Questions

CRE DD cost stack?

Property condition (PCA): $5–25k. Phase I environmental: $3–8k. Phase II environmental (if needed): $10–40k. Boundary survey + ALTA: $3–25k. Appraisal: $5–25k. Title commitment: $500–5k. Engineering review (HVAC, structural, roof): $3–25k. Lease abstracting: $200–1,000/lease. Financial review: $2–15k. Legal: $10–100k+. Specialty (zoning analysis, traffic, market study): $5–50k. Total $50–250k typical mid-market deal, $250k+ on complex.

How does this affect deal economics?

Transaction economics — closing costs, escrow holdbacks, post-close true-ups, broker comp, title savings — directly reduce buyer or seller proceeds. Often 1–4% of deal value cumulatively. Allocate deliberately in PSA negotiation. Reps and warranties insurance (RWI) becoming standard for $20M+ transactions to backstop indemnification.

Standard market practice?

Major markets follow ALTA closing protocols. Buyer typically pays: lender title, recording fees, half escrow, half conveyance tax (varies). Seller pays: owner's title, broker comp, half escrow. Mortgage recording tax (NY, FL): substantial. Transfer tax (CT, DE, NJ, PA): 1–4%. Allocations negotiable but standard market practice limits negotiation leverage.

Risk allocation?

Holdbacks and escrows backstop seller indemnities for representations and warranties. Standard: 1–2% of purchase price for 12–18 months. Larger for: leasing risk, environmental, litigation, tenant credit. RWI shifts indemnity to insurer (1–4% of policy limit premium). Use earnouts for performance risk on operating businesses or stabilizing assets.