Usually the average escrow period for CRE is longer than for residential. This is due to a number of factors, and yes, it can depend on property type. One factor contributing to the longer escrow period in CRE is the financing complexity. Another is that environmental issues enter the arena. Another contributing factor to the length of escrow period in many transactions is that CRE is often bought by groups, and this can entail gathering of capital, preparation of financial projections, and legal work associated with group formation. There is also the factor of complex negotiations between the purchasing entity and the selling entity; it is not uncommon to see a 90-day "due diligence period", in which the purchasing entity explores the target acquisition form any number of directions (financial, legal, environmental, etc). All of these phases take time.
Jan 24, 2011