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HomeLife/Cimerman Real Estate Ltd., Brokerage Kam Ghatan, Broker Industrial · Commercial · Investment

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Tenant Roster

Active tenants, lease terms, in-place rent and upcoming expirations.

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Guide

Using Tenant Roster well

A rent roll you can work with: each tenant's area, rent, term and options, with rent per square foot and expiries at a glance. It is how you judge the durability of the income behind an NOI.

How to use it

  1. Enter one row per lease from the seller's rent roll; confirm against the leases and estoppel certificates during due diligence.
  2. Note renewal options, rights of first refusal and any arrears in Options and Notes.
  3. Set today's market rent and a cap rate under Assumptions: the roster shows WALT, how much space rolls within 24 months, the expiry chart by year, and what bringing rents to market is worth.

Reading the result

  • Weighted average lease term (WALT): longer is more secure. Under about three years, a buyer is underwriting re-leasing, not income.
  • Rollover concentration: how much area expires in any 12–24 month window.
  • Mark-to-market: the gap between in-place rents and today's market rent — upside if below, risk if above.

Case study

01

Upside — and the risk behind it

An 86,000 SF, five-tenant building. In-place rents $13.75–$17.50 (average $15.42 net); market rent about $18.00. Leases expire between December 2026 and August 2030.

  1. Total in-place rent: $1,326,500 a year.
  2. WALT is only about 1.3 years by area (1.4 by rent): 60,000 SF — 70% of the building — expires within 24 months.
  3. If every lease were reset to $18.00, rent would rise by $221,500 a year (17%) — about $4.0M of value at a 5.5% cap.
  4. But the same rollover is the risk: re-leasing takes time, may need inducements, and lenders size loans on in-place income.

The lessonThis is a value-add deal priced as if it were core if you pay a market cap rate on in-place NOI without discounting for 70% rollover. Price the downtime and leasing costs explicitly.

Common mistakes

  • Trusting a rent roll without leases and estoppels
  • Ignoring renewal options at below-market rents
  • Counting month-to-month tenants as term income
  • Missing arrears or related-party leases

Case studies are illustrative. Properties and figures are composites built to show the method; they are not offers or appraisals. Talk to Kam before relying on any number for a transaction.

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