LEASE ABSTRACTING SERVICES
Reliable and Timely Lease Abstracts Tailored to your Exact Specifications
Real Diligence's lease abstracting services deliver exceptional value for investors, and include both acquisition due diligence and ownership/management lease abstracting. Depending upon your needs and preferences, Real Diligence will compile reliable and timely lease abstracts tailored to your exact specifications.
Lease Abstracting for Acquisition Due Diligence
Meticulous and accurate lease abstracts are critically important when considering commercial real estate acquisitions. Real Diligence's due diligence lease abstracting services include a thorough review of:
- All current and future financial information to assist in computing the property's value, including basic rent, additional rent, tenant improvements, lease commissions, etc.
- All critical lease dates, including lease expiration dates, rent step-up dates, renewal and option dates, etc.
- Each tenant's CAM, taxes and insurance responsibilities, structure and payment methodology, all of which can differ from tenant to tenant
- Other rights and obligations detailed in the lease that could impact upon the property's value
- Potential or existing problems that can be gleaned from landlord/tenant correspondence often found within a lease file. Examples of such problems include rent delinquencies or chronic maintenance and repair issues.
- All critical lease data is analyzed and entered into Argus and/or Real Diligence's proprietary software so that we can provide our clients with a timely, comprehensive and accurate due diligence report.
Lease Abstracting for Ownership and Management
There are items within each lease that are critical to abstract when performing due diligence prior to acquisition. There are many other provisions found within the lease that may not be as significant prior to an acquisition but assume great importance for the future ownership and management of the property. Real estate companies take two approaches to reviewing leases for ownership and management. Some companies first request a more limited "due diligence abstract" and then request comprehensive lease abstract if the property is successfully acquired. Other companies choose to abstract the lease only once and to have that abstract serve both due diligence and ownership/management purposes. The advantage of the first approach lies in cost savings if the property is not eventually acquired. However, it is faster and more cost effective to review the abstract and leases simultaneously. In addition, a thorough initial review allows the potential owner to learn more about the property early in the process.