Understanding and Assessing Commercial Real Estate Leases

This fast-paced webinar will identify the key legal and financial aspects of a commercial lease from the perspective of both the lender to a landlord and the lender to a commercial tenant.

A primary focus of this webinar will be the proper assessment of future cash flow from rental income based on a qualitative and quantitative analysis of the underlying lease. Understanding these key drivers will allow a lender to properly prepare a rental rate sensitivity analysis to stress test projected income in the loan underwriting process. This program will also discuss the issues surrounding the financial distress or bankruptcy of a tenant and it’s impact on cash flow projections in a workout scenario.

What You Will Learn

  • Reviewing leases, lease summaries and lease abstracts to extract necessary data 
  • What happens to a lease when the Tenant is in financial distress or bankruptcy 
  • Understanding the relationship between the Landlord and each Tenant 
  • Evaluating potential conflicts between the Landlord’s Lender and a Tenant’s Lender (and their economic consequences) 
  • Assessing the financial strength of the Tenant and any credit support for its lease obligations

Who Should Attend?

Whether you make loans to owner/landlords secured by real estate, rents and leases or loans to tenants secured by leasehold improvements and leasehold interests, this webinar is for you.