Financial Analysis
July 29, 2010 1:29 PM   Subscribe

What are some key items to look at when analyizing financials for a potential tenant in a commerical building?

I am familiar with financial analysis and ratios but there are so many ratios... which ones are really relevant when looking to lease an office to a tenant?

What are some other key things to look at?
posted by HollyAnn to Work & Money (1 answer total)
 
Best answer: Are you asking the potential tenant for audited financial reports? If so, I would look at things like liquidity ratios and solvency ratios.

In addition to financial reports, I would also ask to see a bank statement/letter of credit from a bank (this will depend on the size of the company whose tenancy you are considering), references from a previous landlord, judgments against the company and its principals (if it's closely held), etc.

This assumes we're talking about the United States. Other areas of the world may have slightly different practices/limitations on what kind of data you can get for potential commercial tenants.
posted by dfriedman at 1:38 PM on July 29, 2010


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