Instructor Blog - Credit College - Commercial Real Estate

Q: Shouldn't we be talking about rent roll, occupancy rates, and so on?

A: We're following the Financial Regulators’ suggested sequence of analysis – the actual borrower (not the income-producing property), the guarantor, and then the income-producing property. When we get to the income-producing property, we will focus very closely on rent rolls, occupancy levels, and all factors that determine an income-producing property's net operating income (NOI) and likely ability to service the interest-bearing debt on the property.