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ARTICLE · 15 NOVEMBER 2012

Confirming Value Through Proper Lease Due Diligence

Blake, Cassels & Graydon LLP
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The value of income-producing properties, such as office towers and shopping centres, can often be distilled down to the income derived from the property's existing leases.

CanadaReal Estate and Construction
Joseph Grignano
Joseph Grignano
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The value of income-producing properties, such as office towers and shopping centres, can often be distilled down to the income derived from the property's existing leases. As such, it is absolutely vital to analyze and confirm that the expected income from a property is actually supported by the terms of the leases. Set out below are some lease due diligence considerations that will assist a purchaser in ensuring that it will be able to realize the income stream that it bargained for. For a more general overview of lease due diligence issues (monetary and non-monetary), see our November 2012 article: Conducting Leasing Due Diligence? Watch for These Nine Lease Provisions.

Basic/Net Rent

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