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COMMERCIAL-REAL-ESTATE5 MIN READ

Read The Rent Roll Like A Hypothesis

Read a rent roll as a set of cash-flow assumptions that need verification.

The reframe: do not ask whether the rent roll looks full; ask which future cash flows it is asking you to believe. Contracted income is not the same as durable income A rent roll gives names, square footage, rent, expirations, deposits, options, and sometimes arrears. Those details only become underwriting when you translate them into cash-flow assumptions. A lease with nine years remaining and investment-grade credit deserves a different renewal, downtime, and collection view than a month-to-month local tenant paying above market. The same current rent can carry very different risk. Time turns details into value DCF analysis makes timing…

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