IRVINE, CA—Conducting proper due diligence can be a time-consuming process that impacts whether or not a transaction can be finalized. As GlobeSt.com recently reported, Houston-based Situs and Irvine-based GlobeSt.com Thought Leader Auction.com have entered a partnership in which Situs will provide due diligence to Auction.com's clients for properties on the firm's commercial real estate platform. We spoke exclusively with Gordon Smith, general manager of Auction.com's CRE division, about why this partnership makes sense and why streamlining the due diligence process is critical to CRE.

GlobeSt.com: Why is Auction.com providing third-party due-diligence summaries?

Smith: Conducting proper due diligence is a time-consuming process. Auction.com wants to change that. So, we're on a mission to bring much-needed transparency and simplicity to the buying process. Providing independent due-diligence reviews from Situs is just the latest in a series of enhancements we're making to help buyers understand an investment opportunity. In addition, we already purchase other third-party reports—such as environmental and property-condition assessments—when they're missing, and we have several other initiatives underway to enhance the experience for buyers and sellers.

GlobeSt.com: What are some typical issues that come up for clients with getting due diligence done for a deal?

Smith: Today's buyers can source more potential acquisition opportunities than they have time to investigate, especially on our marketplace, where there's no such thing as an invitation-only offering. So, one of the biggest issues our buyers face is deciding where to spend their limited amount of time and financial resources. We are making it easier for buyers to process and review more opportunities by providing diligence they can rely on.

GlobeSt.com: What should our readers know about your new partnership with Situs?

Smith: We've partnered with Situs to ensure the due diligence we provide to buyers is well organized and presented in a standardized format. Our partnership with Situs allows the smaller investor and larger institutions access to the same high-quality data. We expect to use Situs on more than $5 billion of assets annually on the Auction.com platform, further enhancing our mission to provide the most trusted online marketplace for transacting commercial real estate.

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Why Streamlining Due Diligence is Critical

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