Value Beyond Cost Savings - Green Building Finance Consortium

Value Beyond Cost Savings: How to Underwrite Sustainable Properties5. Property Operations/Cash Flowa. Operating Cash Flow History-Verification• Operating Statements• Rent Roll• Historical Occupancy/Collection Losses• Tenant Sales Data (retail only)• Expense Recoveries• Other Income• Estoppels (verification)b. Lease Structure and Review• Lease Abstracts/Major Lease Review• Standard Lease Agreement• Signed Non-standard Leases• Objectionable Provisions Assessmentc. Operating Expenses• Owner vs. Tenant Paid Expenses• Utility Expenses• Real Estate Taxes• Personal Property Taxes• Maintenance and Repairs• Landscaping/Groundkeeping• Management Fees• Property Service Contracts• Operating Leasesd. Capital Expenses/Escrows and Holdbacks• Replacement Reserves• Tenant Improvements• Leasing Commissions• Capital Expenditurese. Operating Cash Flow Forecast-Verification• Local Market Analysis/Forecast• Comparable Property Assessment• Lease Rollover Analysis• Large Lease Expiration Assessment• Re-Lease Risk Analysis• Review of forecasted rent changes, tenant retention, rollover vacancy,future occupancy assumptions, concessions, etc.6. InsuranceProperty and CasualtyLiabilityBusiness Interruption7. Third Party ReportsAppraisal ReportProperty Condition/Quality: Engineers ReportPest Inspection ReportEnvironmentalLegal, Title and SurveyGovernment RegulationsTax Consultant ReportInsurance-Risk Management ConsultantSustainability Related Third-Party InvolvementA key value of the checklist and our select comments on underwriting changes is toreinforce the point that sustainable property investment decisions involve much more than179