Tenant Credit Review
A Tenant Credit Review is typically performed at the request of a landlord, commercial real estate broker, or real estate lender or investor prior to entering into a lease, which requires a substantial investment in tenant improvements.
This process includes a thorough review of the tenant’s financial statements in an effort to assess the overall risk of insolvency and its ability to meet its future lease obligations. Areas of focus include the tenants overall leverage, sufficiency of cash flow, priority of the tenant’s financial obligations, and financial trends. Also reviewed is the health of the tenant’s general industry and a comparison of the tenant’s financial performance relative to its peers and/or industry benchmarks.
For additional information about our Tenant Credit Reviews, please contact us today.