The research desk / Commercial property education
Look closer.
Ask better.
A commercial property brief. Use these questions when reviewing an asset, lease or tenancy schedule. Record each answer, its source and what still needs to be checked.
Confirm the asset
- What is the legal interest, permitted use, location and condition of the property?
- Which title, planning, access, compliance or environmental matters need confirmation?
- What evidence supports the stated floor area, building specifications and current use?
Understand the lease and tenant
- Who occupies the property, and what do the executed lease and tenancy schedule show?
- What are the lease expiry, options, rent reviews, incentives and tenant obligations?
- Which income is contracted, which is forecast and what remains unknown about vacancy or arrears?
Read the operating costs
- Which outgoings are recoverable, and which costs remain with the owner?
- What is known about maintenance, insurance, management, compliance and capital expenditure?
- Do the income and expense figures use the same period and clearly state their tax basis?
Keep an evidence record
- Who prepared each document or figure, and when was it last checked?
- What would change the income, costs, financing or exit assumptions?
- Which unresolved questions should go to your independent legal, tax or financial adviser?