How do you update your lease analysis?

1 Gather the latest data

The first step to update your lease analysis is to gather the latest data from various sources. You need to collect information on the current rent, expenses, occupancy, lease terms, tenant credit, and market trends for each property in your portfolio. You can use different tools and methods to obtain this data, such as online databases, broker reports, property inspections, tenant surveys, and financial statements. You should also verify the accuracy and completeness of the data before using it for your analysis.

2 Use a software tool

The next step to update your lease analysis is to use a software tool that can help you organize, analyze, and present the data. A software tool can save you time and effort by automating calculations, comparisons, and projections. You can also customize the software to fit your specific needs and preferences. For example, you can choose the metrics, assumptions, scenarios, and formats that you want to use for your analysis. Some of the common software tools for lease analysis are ARGUS, LeaseQuery, CoStar, and LeaseMatrix.

3 Compare different scenarios

The third step to update your lease analysis is to compare different scenarios and outcomes based on the data and the software tool. You can use scenario analysis to evaluate the impact of various factors and events on your lease performance, such as rent increases, expense changes, vacancy rates, tenant turnover, lease renewals, market fluctuations, and lease modifications. You can also use sensitivity analysis to assess the effect of changing one or more variables on your lease results, such as net present value, internal rate of return, cash flow, and break-even point.

4 Identify opportunities and risks

The fourth step to update your lease analysis is to identify opportunities and risks that arise from the scenario and sensitivity analysis. You can use this information to make strategic decisions and recommendations for your lease portfolio. For example, you can identify opportunities to increase rent, reduce expenses, improve occupancy, extend lease terms, or negotiate incentives. You can also identify risks to avoid or mitigate, such as rent loss, expense increase, vacancy increase, tenant default, or market downturn.

5 Communicate your findings

The final step to update your lease analysis is to communicate your findings to the relevant stakeholders, such as landlords, tenants, brokers, lenders, investors, or managers. You need to present your findings in a clear, concise, and persuasive manner, using charts, graphs, tables, and narratives. You should also highlight the key points, insights, and recommendations that you derived from your analysis. You should also be prepared to answer questions, address concerns, and provide feedback on your findings.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?