It seems that no industry is exempt from the supply chain issues that are plaguing the economy. These challenges are affecting third party companies that provide due diligence support and documentation to buyers during a transaction, essentially elongating the process. As a result, sellers are now requesting shorter due diligence periods as one of the most popular concessions.

"In this COVID-19 environment with supply chain delays and worker shortages across all sectors, third-party real estate diligence vendors—like title companies, surveyors, environmental engineers and appraisers—are feeling the strain like other industries," T. Gaillard Uhlhorn, a member at Bass, Berry & Sims PLC, tells GlobeSt.com. "As a result, it is taking purchasers longer to get their standard diligence reports for review from their providers."

These documents include title commitments, surveys, property condition reports, Phase I environmental site assessments, appraisals and so on, according to Uhlhorn. With limited access to these documents, sellers are responding by pushing for expedited closings. "This trend is making the push for shorter diligence period and closing periods even more stressful on potential purchasers," says Uhlhorn. "This is an interesting trend we are witnessing in many markets."