# Commercial lease audit

Canonical: https://chicagocommercialfunding.com/tools/lease-audit/

Translate the legal documents into a dependable cash-flow and obligations record.

An original educational working agenda, not a legal form or substitute for transaction-specific advice.

- [ ] **Collect the complete agreement.** Include the executed lease, amendments, exhibits, guaranties, commencement certificates, side letters and assignments.

- [ ] **Confirm the tenant entity.** Match the actual obligor, business occupant and guarantor; identify transfers and consent requirements.

- [ ] **Verify premises and area.** Reconcile leased area, measurement rights, common-area treatment and expense denominators.

- [ ] **Map rent mechanics.** Record base rent, escalations, percentage rent, abatements and special credits.

- [ ] **Read reimbursement clauses.** Identify recoverable pools, exclusions, caps, expense stops, gross-up and audit deadlines.

- [ ] **Allocate repairs and capital.** Document roof, structure, systems, replacement and compliance obligations rather than relying on NNN labels.

- [ ] **Calendar critical dates.** Track option windows, termination rights, delivery, commencement, expiration and notices.

- [ ] **Review use restrictions.** Check exclusive uses, prohibited uses, operating covenants and co-tenancy consequences.

- [ ] **Identify security.** Confirm deposits, letters of credit, guaranty scope, expiration and transfer mechanics.

- [ ] **Check insurance and casualty.** Review required coverage, deductibles, restoration obligations and termination rights with advisers.

- [ ] **Request estoppels.** Reconcile responses to the lease abstract and investigate exceptions before relying on them.

- [ ] **Separate summary from advice.** Use the abstract as an administrative aid. Escalate ambiguous clauses for document-specific legal review.

- [ ] **Review default and notice mechanics.** Identify payment and performance defaults, cure rights, notice addresses and remedies with counsel. A calendar entry cannot substitute for valid contractual notice.

- [ ] **Review subordination and lender agreements.** Read any SNDA, recognition agreement and lender consent alongside the lease. Identify which parties are bound and which rights depend on conditions.

## Research sources

- [SEC — negotiated work-letter example, 2024](https://www.sec.gov/Archives/edgar/data/1600033/000160003324000043/q12025exhibit102.htm)
- [SEC — filed retail lease example, 2006](https://www.sec.gov/Archives/edgar/data/1319947/000095015206009917/l23543aexv10w1.htm)