How Long Does It Take? Timelines for Buying and Selling CRE
Time kills deals, and it often kills leverage first.
When business leaders enter a commercial real estate transaction, the most common question is simple: how long will this take? The challenge is that a commercial real estate transaction timeline is not one-size-fits-all. Timelines vary based on asset type, deal structure, financing, tenant occupancy, due diligence findings, and local approvals.
Still, there is a predictable sequence. Understanding it helps leadership teams plan operationally, manage expectations, and avoid preventable delays.
This guide outlines typical timelines for buying and selling commercial real estate, and the key variables that speed up or slow down each phase.
What Defines a Commercial Real Estate Transaction Timeline?
A commercial real estate transaction timeline is the end-to-end process from initial planning to closing and post-closing execution.
For buyers, that often includes underwriting, inspections, financing, and final closing. For sellers, it includes marketing, buyer vetting, contract negotiation, and completing due diligence requirements.
Timelines compress when information is organized and decision-makers are aligned. They expand when documentation is incomplete, issues surface late, or approvals create friction.
Typical CRE Transaction Timelines at a Glance
While every deal is unique, here are general benchmarks:
- Cash purchase, vacant building: 30 to 60 days
- Financed purchase, standard asset: 60 to 120 days
- Complex asset or multi-tenant: 90 to 180+ days
- 1031 exchange-driven timeline: often tighter due to IRS deadlines
- Sale-leaseback or structured transaction: 90 to 180+ days
The rest of this article breaks down what happens inside those windows.
Phase 1: Preparation and Positioning | Typical duration: 1 to 4 weeks | For sellers
This phase is about getting the property ready for market. The cleanest deals begin before the listing ever goes live.
Common seller tasks include:
- Gathering leases, estoppels (when applicable), and rent roll documentation
- Reviewing service contracts and operating expense history
- Confirming zoning and permitted use alignment
- Preparing property financials and historical performance data
- Identifying known issues that might affect diligence
Transparency matters here. Clear information reduces retrades and accelerates execution, which aligns with principles of transparency in commercial real estate.
For buyers
Buyers should pre-define:
- Investment criteria or business use requirements
- Financing strategy and lender readiness
- Target markets and risk tolerance
- Internal decision authority and approval cadence
If buyer financing is required, pre-qualification and lender alignment can remove weeks later.
Phase 2: Marketing and Offer Process
Typical duration: 2 to 8 weeks
For sellers
The marketing timeline depends on the asset, market demand, pricing, and tenant profile.
Common steps include:
- Launching marketing materials and outreach
- Hosting tours and answering buyer questions
- Receiving LOIs or offers
- Negotiating economics and terms
For buyers
This phase includes:
- Reviewing financials and market comps
- Preliminary underwriting
- Site visits and initial inspections
- Submitting an LOI and negotiating deal terms
Many timeline delays come from unclear decision ownership. When leadership alignment is early and firm, this phase moves faster.
Phase 3: Contracting and Negotiation
Typical duration: 1 to 3 weeks
Once a buyer and seller agree on headline terms, the purchase agreement is negotiated and executed.
Key negotiation topics include:
- Earnest money and timing
- Due diligence scope and timeline
- Seller deliverables and documentation deadlines
- Closing conditions
- Risk allocation and remedies
The deal often feels close here, but the highest risk phase is still ahead. The final stretch of commercial real estate negotiations frequently surfaces issues that impact timeline, price, or both.
Phase 4: Due Diligence
Typical duration: 30 to 60 days (sometimes longer)
Due diligence is where timelines are won or lost.
Typical diligence components include:
- Property condition assessment
- Environmental review
- Title review and survey
- Lease review and tenant verification
- Financial verification and operating expense review
- Zoning and compliance review
Regulatory and compliance variables can also affect speed. Evaluating CRE regulatory risk early reduces last-minute surprises.
If diligence reveals material issues, renegotiation may occur. That can extend the timeline or shift deal structure.
Phase 5: Financing and Appraisal
Typical duration: 30 to 75 days (overlapping with diligence)
Financed deals almost always take longer.
Key lender-driven timeline items include:
- Loan application and underwriting
- Third-party appraisal
- Lender-required inspections or engineering reports
- Insurance review
- Final credit approval
- Loan documentation
If financing is not aligned early, closing dates slip quickly. Buyers who approach financing as an early workstream, not a later task, typically close faster.
Phase 6: Closing and Transition
Typical duration: 1 to 2 weeks after conditions are met
Once diligence is cleared and financing is ready, closing typically becomes administrative. Still, last-mile items can cause delays:
- Final title requirements
- Tenant estoppels (if required)
- Final lender conditions
- Prorations and settlement statements
- Closing documents and signature coordination
For owner-users, transition planning also matters. If the business needs time for buildout, permits, or equipment installation, the occupancy timeline may extend beyond closing.
What Makes a CRE Transaction Take Longer?
Here are the most common causes of timeline expansion:
- Incomplete documentation from seller
- Complex tenant situations or missing estoppels
- Environmental issues or unclear compliance history
- Survey or title complications
- Delayed financing approvals
- Decision bottlenecks within buyer or seller organizations
- Appraisal delays
- Local permitting or municipal requirements
Many of these are preventable with early organization and clear accountability.
CEO-Level Planning: How to Protect the Timeline
A faster commercial real estate transaction timeline is usually a leadership decision, not a market accident.
Executives can reduce timeline risk by ensuring:
- Decision-makers are identified early
- Internal approvals have defined cadence
- Data rooms and documentation are complete
- Advisors are aligned and empowered to execute
- Timeline contingencies exist for diligence findings
Even cost structures can shape negotiations and timeline decisions. Understanding how terms flow through to expenses, including provisions related to lease escalation clauses, strengthens deal clarity and reduces backtracking.
Disclaimer
This article is for informational purposes only. It does not provide legal, financial, or investment advice.
Written by the Keyser Editorial Team
