General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
September 2017

Proper assessment of your prospective borrower's future cash flow from rental income involves both a qualitative and quantitative analysis of the underlying leases. Understanding these key drivers will allow a lender to properly prepare a rental rate sensitivity analysis to stress test projected income. This analysis will ultimately determine the loan commitment level.

Topics include:

  • Reviewing leases, lease summaries and lease abstracts to extract necessary data
  • Understanding the relationship between the Landlord and each Tenant
  • Evaluating potential conflicts between the Landlord’s Lender and a Tenant’s Lender (and their economic consequences)
  • Assessing the financial strength of the Tenant and any credit support for its lease obligations

Related Insights

Five Focus Points for Commercial Lease Due Diligence

Proper assessment of your prospective borrower's future cash flow from rental income involves both a qualitative and quantitative analysis of the underlying leases. A sample “Lease Abstract Form” is provided to facilitate the compilation of relevant information. This article discusses five key aspects of a commercial lease which drive this analysis.

September 2017 Pdf Robin Russell