When working in real estate advisory or the commercial property investment industry, due diligence is critical to a successful purchase. This is especially true when it comes to assessing the value and quality of an existing commercial tenant base and the future income stream of the property.
Covid-19 has brought uncertain financial stability, which may be affecting the existing tenants in the properties being purchased. Go one step further. Look beyond the past performance of the existing tenants, as it is not always a reliable indicator of future performance.
Our Existing Tenant Base Financial Reports go beyond standard examination of receivables, lease terms, cost sharing, tax recovery and operating costs to remove uncertainty from decisions made to analyze the cost benefit of an acquisition. Our reports gauge the security of the future income stream by confirming you have high quality tenants.
The Existing Tenant Base Financial Report can confirm:
that the legal entity on the lease is currently registered, active and in good standing with Companies Branch and Corporate Tax Branch - revealing record of violations, name changes, amalgamation, cancellation or wind downs;
negative information, including overdue payments, NSFs, collection claims, tax liens, legal actions, judgments, bankruptcies and pending Tax Court cases;
banking relationships and borrowing facilities;
the existence of negative media exposure;
real property owned by the tenant;
creditor payment trends;
business affiliations and locations;
status of Professional Accreditation;
This report can be completed without a current credit application or the commercial tenant’s knowledge. All that is required is the full legal name on the lease and the address of the building you are purchasing.
For more information on our Existing Tenant Base Financial Report contact us today or download our Income Focused Property Acquisitions: Existing Tenant Base Reports brochure.