How Long Does It Take to Complete a Commercial Real Estate Sale?

One of the most common questions buyers and sellers ask when entering a commercial real estate transaction is: “How long will this take?” The answer depends on several factors, but most commercial sales follow a predictable timeline once you understand the key phases.

Below is a realistic breakdown of how long each stage of a commercial real estate sale typically takes—and what can impact the overall timeline.

Typical Commercial Real Estate Sales Timeline

On average, a commercial real estate sale takes 60–120 days from accepted offer to closing. Some transactions move faster, while others take longer depending on complexity, financing, and due diligence findings.

1. Marketing & Property Identification (30–90+ Days)

For Sellers

Before a deal is under contract, time is spent:

• Preparing marketing materials

• Pricing the property

• Marketing to qualified buyers

• Reviewing offers

Highly desirable assets may receive offers quickly, while others take longer depending on market conditions, pricing, and asset type.

For Buyers

Buyers may spend weeks or months:

• Touring properties

• Evaluating financials

• Comparing opportunities

This phase varies widely based on urgency and availability.

2. Offer & LOI Negotiation (1–3 Weeks)

Once a buyer identifies a property, they submit a Letter of Intent (LOI) outlining key deal terms. Negotiations typically include:

• Purchase price

• Earnest money

• Due diligence period

• Closing timeline

• Financing contingencies

This stage usually takes a few days to a few weeks, depending on responsiveness and deal complexity.

3. Purchase & Sale Agreement (PSA) Execution (1–3 Weeks)

After the LOI is agreed upon, attorneys draft and negotiate the Purchase & Sale Agreement (PSA).

Factors that affect timing include:

• Number of revisions

• Complexity of representations and warranties

• Title, survey, and environmental requirements

Once executed, earnest money is deposited and due diligence begins.

4. Due Diligence Period (30–60 Days)

This is one of the most time-intensive stages of the transaction.

Common due diligence activities include:

• Property inspections

• Environmental reports

• Survey and title review

• Lease audits and financial review

• Appraisal (if financing is involved)

Buyers may request extensions if additional investigations are needed. At the end of this period, earnest money often becomes non-refundable.

5. Financing & Loan Approval (30–60 Days, If Applicable)

For financed purchases, the loan process often runs concurrently with due diligence, but delays can occur due to:

• Appraisal timelines

• Lender underwriting requirements

• Borrower financial reviews

All financing contingencies must be satisfied before closing can proceed.

6. Closing Preparation & Final Steps (1–2 Weeks)

Once contingencies are removed, the transaction enters the final stretch.

This includes:

• Final prorations

• Estoppel certificates (if applicable)

• Closing statements

• Final walk-throughs

• Signing and funding

After documents are recorded and funds are transferred, the sale is complete.

What Can Speed Up or Delay a Sale?

Factors that may speed up a transaction:

• All-cash purchase

• Clean financials and documentation

• Limited tenants or single-tenant properties

• Proactive due diligence preparation

  
  

Factors that may cause delays:

• Financing complications

• Environmental or inspection issues

• Title or survey problems

• Complex tenant structures

• Extended negotiations or amendments

While most commercial real estate sales take 60–120 days, every transaction is unique. Understanding the timeline—and what drives it—helps buyers and sellers plan realistically and avoid unnecessary frustration.

Working with an experienced commercial real estate broker ensures timelines are managed proactively, deadlines are met, and potential delays are addressed early.

Written by LevRose CRE with assistance from: LevRoseCRE.(2024)

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