06/04/2026
Why Commercial Property Buyers Should Review Service Contracts Before Closing
When purchasing commercial real estate, most buyers focus on the property condition, lease income, and financing terms.
One area that is often overlooked is the existing service contracts tied to the property.
Many commercial properties have ongoing agreements for landscaping, pest control, security monitoring, HVAC maintenance, waste services, or property management.
These contracts may automatically transfer with the property or require cancellation before closing.
Reviewing these agreements helps buyers understand ongoing operating costs and avoid unexpected obligations after the transaction is complete.
Smart investors review commercial property operating expenses, vendor agreements, and service contracts during the due diligence period to ensure the investment performs as expected.
For guidance through commercial contracts and due diligence, connect with John Little, Broker Associate.