Investment Analysis Lease Rollover Risk Analysis

TheAnalyst PRO allows you to complete a Detailed Lease Analysis for each tenant. Included in the Lease Details section is the ability to add Lease Rollover Analysis. The Lease Rollover Analysis will allow you to enter the probability that the tenant will renew their lease upon lease expiration and enter the anticipated new lease terms.   

When creating the Lease Rollover Analysis, we consulted with numerous institutional investors including CMBS lenders, REITs and pension funds that often spend hours if not days analyzing a property using complex alternatives such as Argus. TheAnalyst PRO includes one rollover period option versus multiple rollover options. Our intent is to maintain the ease of use yet provide the highest level of sophisticated investment and lease analysis. At each rollover period, more hypotheticals are required. With 2+ future projected rollovers, the analysis projection becomes less reliable and very hypothetical. Many investors will underwrite a property's rollover risk based on current lease expiration(s) and calculated the renewal probability for a single rollover. 

TheAnalyst PRO’s Investment Analysis generates both 5-year and 10-year cash flow reports. When the initial lease term expires, the algorithm will calculate the rental income for each lease using the Lease Rollover Analysis inputs. These lease inputs will be used for the duration of the reporting years (5 or 10-years). In the Lease Rollover Analysis section, you can also add Custom Rent Escalations to account for future lease renewals and contracted lease escalations.