4 issues that can complicate commercial real estate sales

On Behalf of Marcus, Gould & Sussman, LLP | Nov 11, 2025 | Real Estate | Commercial real estate holdings can be a source of regular revenue in the form of rental income. They can also be lucrative long-term investments, with owners eventually selling their holdings for a significant profit. Commercial real estate owners listing their properties for sale generally want to maximize the sale price and move through the closing process as quickly as possible. Occasionally, complications arise after a buyer makes an offer that can delay the closing or even lead to the cancellation of the transaction. What common commercial property issues commonly arise during pending transactions? 1. Title problems Perhaps there is an outdated lien that shows up as an active lien against the property during the title search process. Maybe there is a former owner who still shows up as a current owner on county records. Title issues can require weeks or even court hearings to resolve in some cases. Commercial property owners may want to perform a cursory title check on their own behalf before listing the property to address issues in advance. 2. Zoning concerns Not every commercial property meets every business’s needs. The zoning of the property can impact its usefulness for a prospective buyer. In some cases, the zoning of the property might not align with the buyer’s intended use of the property. The entire transaction may then be contingent on the buyer securing a zoning variance or successfully rezoning the property. 3. Lease issues Many commercial property owners do not actively use the properties they own for their own companies. Instead, they lease the properties to other organizations. Leases that have technically expired or that do not conform to state statutes could create unexpected complications during the sale process. Even valid leases could end up causing complications, especially if the buyer intends to remove the tenants when there is a long-term lease already in place. 4. ENVIRONMENTAL ISSUES Virtually every commercial transaction will involve some search, testing period and inspections relating to environmental issues. Usually there will be a period of time and authorizations to perform such inspections and testing. Evaluating the current condition of a property, conducting a title review and even communicating with tenants can help reduce the likelihood of major complications during commercial real estate closings. Sellers who are aware of possible challenges can take appropriate steps to streamline the listing and sale process. The support of a commercial real estate attorney can help to prevent and effectively address any last-minute closing complications.