Commercial Lease Analysis Training Course

Participants can create a reliable lease abstract and identify priority due diligence issues.

• Abstracting critical dates, notice periods and monetary obligations into a lease summary
• Read demise, permitted-use and exclusivity clauses for operational restrictions
• Compare repair, reinstatement and dilapidations obligations against property condition evidence
• Security deposits, letters of credit and guarantees assessed for recovery protection
• Assignment, subletting and change-of-control provisions evaluated before corporate transactions
• Document hierarchy resolved where amendments, side letters and plans conflict

Participants can reconstruct contractual rent obligations and model rent movements over time.

• Base rent schedules reconstructed from commencement dates, rent-free periods and escalations
• Apply fixed, stepped, indexed and turnover-rent review mechanisms accurately
• Index-linked rent calculated using CPI reference dates, caps and collars
• Model break clauses, extension options and holdover rent under alternative dates
• Percentage rent tested against gross-sales definitions, thresholds and audit rights
• Prepare rent roll fields for contracted rent, passing rent and arrears

Participants can assess operating-cost obligations and test the accuracy of tenant recoveries.

• Classify recoverable operating expenses, non-recoverable costs and capital exclusions
• CAM reconciliations checked against gross-up provisions, caps and exclusions
• Allocate service charges using proportionate area, fixed shares and usage metrics
• Audit rights, supporting invoices and reconciliation timing assessed for dispute exposure
• Property tax, insurance and utilities obligations traced to lease clauses
• Create tenant expense schedules separating estimates, accruals and final settlements

Participants can calculate effective rent and compare lease economics using discounted cash flow methods.

• Calculate effective rent by spreading incentives across the non-cancellable term
• Present-value rent schedules built using discount rates and payment timing
• Compare nominal rent, effective rent and net effective rent measures
• Value tenant-improvement allowances, fit-out contributions and rent-free concessions
• Model landlord and tenant cash flows under renewal and relocation scenarios
• Benchmark occupancy cost per square metre against income and sales

Participants can evaluate lease options and recommend defensible renewal, exit or expansion actions.

• Analyse break-option conditions, notice mechanics and consequences of invalid exercise
• Assess renewal options using market rent, timing and strategic occupancy needs
• Calculate option value through scenario-weighted discounted cash flow and sensitivity comparisons
• Evaluate expansion, contraction and first-refusal rights against portfolio requirements
• Termination payments and reinstatement costs incorporated into exit decision models
• Document critical-date controls for breaks, renewals and rent-review notices

Participants can identify lease data required for accounting schedules and reporting reconciliations.

• Identify lease and non-lease components within property service arrangements
• Apply IFRS 16 lessee recognition for right-of-use assets and liabilities
• Compare operating lease expense patterns under ASC 842 and IFRS 16
• Construct lease liability amortisation schedules from fixed payments and discount rates
• Recognise variable payments, incentives and modifications under applicable accounting requirements
• Reconcile lease abstracts, accounting schedules and general ledger balances

Participants can assess tenant credit exposure and prioritise lease-related default risks.

• Assess tenant covenant strength using financial statements, payment history and guarantees
• Calculate rent coverage ratios from occupancy costs, EBITDA and cash flow
• Review guarantor capacity, security instruments and parent-company support limitations
• Model arrears, default interest and recovery timing under delinquency scenarios
• Distinguish insolvency triggers, cure periods and landlord remedies in leases
• Prioritise lease exposures using probability, impact and control effectiveness

Participants can assess how lease terms affect asset value, income quality and portfolio decisions.

• Build discounted cash flow models from contractual rent and market assumptions
• Separate passing rent, market rent and reversionary potential in valuations
• Calculate net operating income after vacancy, operating costs and credit loss
• Apply sensitivity analysis to discount rates, exit yields and renewal probabilities
• Compare lease comparables by term, covenant, incentives and expense structure
• Prepare investment-committee commentary clearly explaining value drivers and downside cases

Participants can establish practical lease controls and prepare targeted improvement actions.

• Prioritise lease issues using risk, value and operational criticality
• Draft negotiation positions for rent, incentives, repairs and exit rights
• Set approval thresholds for deviations from standard lease playbooks
• Design critical-date calendars with owners, reminders and escalation rules
• Create lease abstract quality checks before system migration or reporting
• Develop a 90-day action plan for current lease portfolio improvements