Investment

How to Evaluate Commercial Property Investments

A disciplined diligence checklist covering tenant covenant, lease structure, building quality and exit liquidity.

Aditya Pradhan · Senior Investment Consultant10 April 20267 min read

Underwriting the income

Read the lease before you read the brochure. Lock-in, escalations, security deposit, exit clauses and renewal rights all materially affect the present value of contracted cash flows.

Underwriting the building

Specification, vintage, redundancy and management quality determine whether the asset will continue attracting institutional occupiers ten years from now.

Underwriting the exit

Liquidity in CRE is a function of ticket size, asset type and micromarket depth. Plan your exit before you enter.