A lot can happen during the due diligence period of a commercial real estate acquisition. Developers are evaluating the property, bringing in consultants, and trying to answer the questions that will determine whether the project moves forward.
For many development teams, that process can take 60 days or more. The property needs to be evaluated carefully, and the right professionals need to weigh in. A significant amount of time can also go toward finding information that already exists.
Teams search municipal codes and ordinances, look for applicable development standards, track down fee information, and work through questions about the approval process. When an answer isn’t readily available, they may need to contact municipal staff or another professional and wait for clarification.
I’ve spent my career in development and engineering, and this is one of the areas where I see an enormous opportunity to improve the process. ChatAEC was built in part around a simple question: How much of that due diligence period can we give back to the people making the decision?
The information problem inside due diligence
Every property brings its own set of questions, and the answers depend heavily on where the project is located. Each jurisdiction organizes its information differently, and teams still have to determine which requirements apply to their project.
Across an entire project, that research can turn days into weeks.
What ChatAEC automates
We designed ChatAEC to take on more of the information gathering work that happens during this process. Teams can use it to ask questions about the codes, ordinances, and requirements affecting a project and get relevant information without manually working through multiple sources.
They can look for information about development standards, fees, and municipal requirements as questions arise. ChatAEC can also automate due diligence reports, bringing key information together in a format teams can use as they evaluate the property.
A developer may have dozens of questions during due diligence. Answering many of the initial ones faster allows an architect or engineer to focus on how a requirement affects the design, a planner to evaluate the entitlement path, or an attorney to address legal questions that require interpretation.
Better information also means better questions
Faster access to information can improve the conversations development teams have with municipalities. Planning departments are managing their own workload and staffing constraints. When applicants need basic information, municipal staff often become one of the resources they turn to for answers. Those questions add to the workload that the staff members are already handling.
Giving development teams better access to codes, requirements, and process information can help them resolve more foundational questions before reaching that point. When they do need to engage municipal staff, they can focus the conversation on questions specific to the project.
Due diligence is only the beginning
The need for regulatory information continues after a property moves through due diligence. As a project advances, the questions become more technical. Teams need to understand permitting requirements, applicable building codes, required documents, and the standards their plans will be reviewed against.
We see an opportunity for the same information gathered during due diligence to continue supporting the project through that process. ChatAEC can provide access to codes, ordinances, permitting requirements, and other technical information as teams prepare for the next stages of development.
Acquisition, entitlement, and permitting are connected parts of the same development timeline, and time spent getting information at any stage can affect when the project ultimately gets built and opened.
Giving time back to development teams
Our goal with ChatAEC is to greatly reduce the time typically spent in a due diligence period gathering and organizing information.
Development will always require careful review, professional expertise, and coordination with municipalities. Giving teams faster access to the information they need allows more of that time to go toward the work that requires their unique knowledge.
By making development information easier to access and automating more of the early due diligence process, ChatAEC helps teams get to the substantive questions sooner and make better use of the time they have before an acquisition moves forward.
What does ChatAEC do during due diligence?
ChatAEC answers questions about the codes, ordinances, development standards, fees, and municipal requirements affecting a property. It can also automate due diligence reports that bring key information together in one place.
Does ChatAEC replace consultants during due diligence?
No. ChatAEC handles the information gathering so architects, engineers, planners, and attorneys can focus on the questions that need their expertise.
Can ChatAEC be used after due diligence?
Yes. ChatAEC provides access to codes, ordinances, permitting requirements, and other technical information as projects move into entitlement and permitting.
Learn how ChatAEC can help your team streamline due diligence and get development answers faster.
