An office rent roll can show a fully leased building where half the desks are empty, one tenant has a termination option, another received a large improvement allowance, and the largest suite becomes available six months before the proposed loan matures.

Office value depends on more than contractual rent. Tenant use, location, building quality, floor plates, parking, transit, amenities, systems, lease economics, capital, and the cost to win the next tenant determine whether the income survives.

A replacement search should identify why each tenant needs this building and what a new tenant would require. Long lease term can defer the question; it cannot remove it.

Review leases, rent roll, access data where available, subleases, listings, tenant interviews or estoppels, and visible use. A tenant can pay rent while marketing the entire suite or carrying unused space after a workforce change.

Identify contraction, expansion, assignment, sublease, termination, renewal, and give-back rights. Compare the contractual expiration with the first date income can change.

For each major tenant, understand business, headcount, location strategy, guarantor, credit, and cost of moving. Physical occupancy is not a lease amendment, but it can foreshadow one.

Rebuild base rent, free rent, tenant improvements, brokerage commissions, moving allowances, expense stops, caps, parking, signage, storage, and other concessions over the lease term.

Compare face rent with net effective rent and cash received. A new lease at a high rate can create little early cash after the landlord funds construction and free rent.

At rollover, model downtime, demolition, improvements, commission, permit, and lease-up. The capital required to replace rent belongs in valuation and reserves.

Review suite depth, windows, columns, cores, elevators, restrooms, ceiling, HVAC zones, power, backup, loading, security, lobby, common areas, and subdivision. A large single-tenant floor may be expensive to divide.

Compare the vacancy with active tenant sizes and preferences in the submarket. A building can be well located and physically mismatched to current demand.

Tour competing available space and record improvements, asking terms, concessions, parking, amenities, and delivery condition. Use what tenants can lease today, not only historical comparable deals.

Verify owned, leased, shared, reserved, and validated parking, ratios, cost, rights, expiration, and actual peak use. Review transit, bike, pedestrian, rideshare, disability access, and traffic.

A parking agreement ending before a major lease can undermine renewal. Structured parking introduces maintenance, security, waterproofing, elevators, and capital.

For suburban office, parking and road access can define the tenant pool. For urban office, transit and nearby amenities can matter more. Underwrite the actual worker and client trip.

Reconcile taxes, insurance, utilities, janitorial, security, repairs, management, landscaping, snow, elevators, HVAC, and common areas with each lease's base year, expense stop, gross-up, cap, exclusion, audit, and administrative fee.

Property-tax reassessment or insurance can increase cost without full reimbursement. Vacancy can shift common expenses to the owner even when occupied tenants reimburse shares.

Build recoveries from lease language and actual billings, not a single percentage of expenses. Review tenant disputes and audits.

Inspect roof, facade, windows, elevators, HVAC, controls, electrical, plumbing, fire protection, backup power, indoor air, and accessibility. Compare condition and capability with competing buildings.

Deferred controls, chillers, elevators, facade, and roof can require large capital. Tenant complaints and work orders can reveal issues absent from a property-condition summary.

Energy use and operating hours affect tenant cost. Understand separately metered services, after-hours HVAC, sustainability commitments, and capital needed to satisfy lender, insurer, law, or tenant requirements.

Office-to-residential, hotel, medical, life-science, education, or self-storage conversion can create an alternative exit and often faces zoning, light, depth, plumbing, egress, parking, structure, utilities, code, and financing constraints.

Do not assign conversion value from a broad policy announcement. Commission concept, code, cost, entitlement, utility, and market work for the actual building.

Price office use on its own. Conversion should be a documented option with cost and probability, not the amount needed to justify buying obsolete space.

Place lease expirations, termination options, capital, and loan maturity on one timeline. A refinance after the anchor can leave should be underwritten to the post-rollover scenario.

Stress vacancy, lower effective rent, concessions, improvements, commissions, systems, taxes, insurance, and higher refinance cost. Review reserves, cash management, recourse, tenant triggers, and leasing covenants.

Before identification, obtain leases, amendments, guaranties, estoppels, subleases, rent and recovery history, tenant financials, rollover schedule, title, survey, condition, environmental, accessibility, insurance, taxes, market availabilities, and lender terms. Office property should be bought from the next lease event backward.

Build a competitive set by location, building class, age, size, floor plate, parking, transit, amenities, condition, owner, and suite size. Record direct and sublease space, asking rent, concessions, improvement packages, days available, and lease status.

Distinguish signed leases from rumored demand. Brokers can report activity without a tenant executing. Track completed deals and which buildings lost prospects.

Compare future subject vacancies with what tenants can choose at that time, including projects under renovation and shadow space. A metro vacancy rate cannot price one 20,000-square-foot suite.

Limit new leases, amendments, concessions, terminations, capital commitments, and contracts without buyer approval during escrow. Require updated rent, recoveries, arrears, tenant correspondence, and leasing pipeline.

Obtain estoppels and subordination or lender documents as appropriate. Reconcile estoppel terms with the lease and seller model; resolve discrepancies before closing.

Transfer deposits, prepaid rent, receivables, commissions, improvement obligations, vendor contracts, access, plans, warranties, keys, and open projects. The buyer should know which landlord promises remain unfunded on Day 1.

Estimate reassessed property tax and quote current insurance for construction, roof, vacancy, flood, wind, fire, systems, claims, and liability. Vacancy can affect coverage and increase unreimbursed operating cost.

Model recoveries under each lease after the reset. Base years, caps, exclusions, occupancy gross-up, and vacancy determine how much reaches tenants.

Use revised net operating income in lender and valuation cases. A building whose tenants reimburse old expenses may expose the owner to the entire increase.

Review financial strength alongside headcount, office attendance, remote-work policy, sublease activity, hiring, acquisitions, and location strategy. A solvent tenant may still consolidate space at expiration.

For major tenants, write a renewal case and a departure case. State decision makers, notice dates, space use, moving cost, alternatives, and landlord capital required to retain them.