A commercial real estate acquisition budget should account for the period between closing and the income expected in the operating plan. In his October 7 article, Don McClain, Founder of Medro Advisors, explains how to separate transaction expenses, planned post-closing cash needs and contingency funds. For commercial property buyers, the framework can be applied to repairs, tenant improvements, leasing costs and carrying expenses. The article emphasizes dated cash forecasts, transaction-specific assumptions and confirmation of financing availability. It also cautions against assigning the same funds to both the purchase and the operating plan. Related reading: the forthcoming book FUNDED.
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