Mitigate Tenant Risk: Form An Alliance.
Managing tenant risk in commercial leasing programs requires careful research and analysis of many factors. These include financial and market-related issues that must be scrutinized to fully understand the creditworthiness of a particular tenant.
Evaluating tenant credit and assessing a company’s strengths and weaknesses is a process that, done right, can greatly reduce a landlord’s financial risk. That due diligence can be done by either internal analysts or by evaluations from third parties. Our clients typically use The Alliance Group as a supplement to their internal capabilities, which could include scrutiny of a tenant that is particularly complex or when their financial commitment exceeds a certain level. We become a valued resource to their people in the field to enable them to make informed conclusions about the need for security enhancements.
Tenant underwriting is a key part of portfolio management, whether it be a tenant looking for space in an existing portfolio property or a company occupying a building being considered for acquisition. The leading commercial real estate companies throughout the U.S. have forged an alliance with us to give them access to the analytical resources that will provide certainty about their tenant decisions.