# Tenant credit review

Canonical: https://chicagocommercialfunding.com/tools/tenant-credit-review/

Investigate who pays the rent and how durable that payment stream may be.

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

- [ ] **Identify the exact obligor.** A recognizable brand does not necessarily mean the public parent guarantees the lease.

- [ ] **Obtain permitted financial information.** Request current statements, trends, liquidity and debt information with appropriate confidentiality controls.

- [ ] **Review payment history.** Reconcile aging, late payments, concessions, disputes and returned payments.

- [ ] **Understand the business model.** Identify customer concentration, cyclicality, location dependence and licensing needs.

- [ ] **Assess occupancy cost.** Compare rent and other property obligations with the tenant’s documented operating economics when available.

- [ ] **Review guaranty support.** Verify scope, financial support, burn-off triggers and enforceability with counsel.

- [ ] **Verify security instruments.** Check draw conditions, expiry, renewal and transfer for letters of credit and deposits.

- [ ] **Check concentration.** Measure how one tenant, industry or related tenant group affects the property’s cash flow.

- [ ] **Model default and replacement.** Estimate downtime, improvement costs, commissions, carry and the achievable replacement rent.

- [ ] **Record information limits.** If financials are unavailable, document the uncertainty instead of treating informal assurances as equivalent evidence.

- [ ] **Connect credit to the remaining term.** Review renewal, termination and assignment rights, business-location dependence and replacement alternatives. Financial strength alone does not ensure the tenant stays after its obligation ends.

- [ ] **Set a lawful monitoring process.** Document permitted information requests, confidentiality, responsible reviewers and a follow-up schedule appropriate to the exposure. Verify any required consent before obtaining protected information.

## Research sources

- [OCC — CRE underwriting and risk framework](https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/commercial-real-estate-lending/pub-ch-commercial-real-estate.pdf)
- [BXP — 2025 office leasing disclosures](https://www.sec.gov/Archives/edgar/data/1037540/000103754026000006/bxp-20251231.htm)