| B | N | |
|---|---|---|
| 27 | IN-PLACE BASE RENT BRIDGE (ANNUALIZED AT THE AS-OF DATE) | |
| 28 | Seller rent roll annual base rent | 3,016,982 |
| 29 | (-) C-300 remeasured to 9,200 SF (letter 2/10/2025) | -8,610 |
| 30 | (-) C-100 rent step of 11/1/2026 shown early | -5,472 |
| 31 | Contractual base rent, F-300 at unsigned draft rate | 3,002,900 |
| 32 | (-) F-300 no executed lease in effect (holdover) | -100,6501 |
| 33 | Documented base rent, executed leases ($) | 2,902,2502 |
| 34 | (-) B-200 base rent abated through January 2027 | -136,800 |
| 35 | Cash base rent in place, executed leases ($) | 2,765,450 |
| 36 | (+) F-300 holdover payments at the draft rate | 100,650 |
| 37 | Cash base rent being billed ($) | 2,866,1003 |
- 1Rent from an unsigned draft amendment; the lease expired 5/31/2026
- 2$114,732 below the seller's rent roll at 9/30/2026. No executed lease supports $109,260 of it (C-300 and F-300). C-100's $5,472 is a signed step, timing only
- 3Ties to the seller's own September 2026 billings to the dollar
You are the associate on the buy side of Cedar Fork Commerce Park, a 248,400 square foot multi-tenant industrial and flex park in Lewisville, Texas. The broker asks $48.0M, a 6.00% cap rate on the seller’s in-place NOI of $2.88M. That NOI starts from one file in folder 03 of the data room: the seller’s rent roll as of September 30, 2026, with $3.02M of annual base rent from 17 tenants.
Before anyone underwrites, your job is to prove every row of that rent roll against the leases, the tenants’ estoppels and the T12. This page takes that check one step at a time, each step run in Compound. The answer at the end: $109.3k a year of the seller’s rent has no executed lease behind it. Figures in the text are rounded, in $M for the park and $k for single suites. The tables show Compound’s exact figures.
Each suite ID is a building letter and a suite number, so B-100 is Building B, suite 100. The park has six buildings, A to F, holding 19 suites, two of them vacant. Seven suites come up on this page.
| Suite | Tenant | What the check finds |
|---|---|---|
| A-100 | Lone Star Cabinetry | Largest tenant, can leave in 2028 |
| B-100 | Trinity Medical Logistics | Renewal fixed below market |
| B-200 | Pecan Street Brewing Supply | Free rent through January 2027 |
| C-100 | Brazos Fire Protection | Rent step shown early |
| C-200 | Redbird HVAC Services | Unpaid TI and an offset claim |
| C-300 | Caddo Solar Installers | Suite remeasured smaller |
| F-300 | Prairie Dental Lab | No signed lease |
This is the rent roll as the seller sent it.
| A | B | C | D | F | H | G | I | J | |
|---|---|---|---|---|---|---|---|---|---|
| 6 | Bldg | Suite | Tenant | Rentable SF | Lease Expiration | Rent PSF | Annual Base Rent | Recovery Type | Options |
| 7 | A | A-100 | Lone Star Cabinetry | 31,200 | 06-30-32 | 11.76 | 366,912.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 9 | B | B-100 | Trinity Medical Logistics | 24,000 | 12-31-27 | 11.22 | 269,280.00 | NNN, controllable CAM capped 5%/yr | 1 x 5 yrs |
| 10 | B | B-200 | Pecan Street Brewing Supply | 9,600 | 01-31-32 | 14.25 | 136,800.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 12 | C | C-100 | Brazos Fire Protection | 14,400 | 10-31-28 | 13.10 | 188,640.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 13 | C | C-200 | Redbird HVAC Services | 12,000 | 03-31-30 | 14.23 | 170,760.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 14 | C | C-300 | Caddo Solar Installers | 9,800 | 08-31-29 | 14.35 | 140,630.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 15 | C | C-400 | Lakeview Auto Glass | 11,200 | 05-31-27 | 13.04 | 146,048.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 18 | D | D-300 | Elm Fork Electric | 15,000 | 12-31-31 | 13.50 | 202,500.00 | NNN | 1 x 5 yrs at 95% of FMV |
| 24 | F | F-300 | Prairie Dental Lab | 6,600 | 05-31-29 | 15.25 | 100,650.00 | Modified gross | None |
| 26 | Total | 249,000 | 3,016,982.00 |
Cedar Fork Commerce Park, its tenants and its data room are illustrative: a made-up property built to read like a real deal. Everything Compound produced on this page is real: the lease abstract workbook and reconciliation memo come from one Compound run on that room, quoted unedited.
Lease abstract example: the exit right the OM leaves out
The first step turns each lease, with its amendments, into one row of terms you can underwrite from.
A lease abstract is a one-page summary of a lease’s economic and legal terms, each tied to the section it came from, so nobody has to reopen the lease. Folder 02 of the room holds 17 leases and three later documents: the A-100 First Amendment, a C-300 remeasurement letter and an F-300 First Amendment.
Compound returned a Lease Abstract tab with one row and 30 columns per suite. This is the row for the park’s largest tenant.
A-100 · Lone Star Cabinetry · Building A
- Documents: Lease 7/1/2022; First Amendment 3/15/2024
- Area: 31,200 rentable SF, 12.56% pro rata share
- Term: 7/1/2022 to 6/30/2032, 69 months remaining
- Rent: $11.76/SF ($30,576 a month, $366,912 a year); next step $12.17 on 7/1/2027, 3.5% a year
- Recoveries: NNN
- Renewal: 1 x 5 yrs at 95% of FMV; notice 9-12 months before expiration
- Termination right: One-time right to terminate effective 6/30/2028 on notice by 9/30/2027; fee = unamortized TI and LC plus 3 months’ base rent (First Amendment)
- Estoppel: Confirms First Amendment termination right; no other exceptions
- Underwriting note: Rent roll and OM omit the termination right; OM calls tenant committed through June 2032
The OM calls Lone Star Cabinetry “committed through June 2032”. A two-page amendment signed in 2024 lets it leave four years earlier, on a fee whose base rent part Compound sized at $94.9k. The base rent at stake after June 2028 is $1.66M.
Takeaway: the largest tenant can leave in 2028, and only the amendment says so.
How to tie a rent roll to the leases, row by row
The second step sets every rent roll field against the executed documents and prices each difference.
Compound’s Reconciliation tab checks area, dates, rate, rent, recovery type and options for all 19 suites. Sixteen tie on rent. These three do not.
| B | C | D | E | N | O | P | |
|---|---|---|---|---|---|---|---|
| 5 | Suite | Tenant | Rent roll SF | Document SF | Rent roll annual rent | Document annual rent | Rent difference |
| 11 | C-100 | Brazos Fire Protection | 14,400 | 14,400 | 188,640 | 183,168 | -5,4721 |
| 13 | C-300 | Caddo Solar Installers | 9,800 | 9,2002 | 140,630 | 132,020 | -8,610 |
| 23 | F-300 | Prairie Dental Lab | 6,600 | 6,600 | 100,650 | 03 | -100,650 |
| 25 | Total | 249,000 | 248,400 | 3,016,982 | 2,902,250 | -114,732 |
- 1C-100: the rent roll shows the signed $13.10 step that starts 11/1/2026, six weeks before closing; $12.72 applies on 9/30/2026. Timing only
- 2C-300: remeasured to 9,200 SF by the landlord's letter of 2/10/2025; the tenant's estoppel certifies 9,200 SF
- 3F-300: the lease expired 5/31/2026 with no renewal option; the extension is an unsigned draft dated 5/12/2026
The three differences are not the same kind of problem. C-300’s rent is overstated for good, because the landlord remeasured the suite and the rent roll never caught up. F-300’s rent comes from an extension nobody signed. C-100’s step is in the signed lease and starts before a December 15 closing, so it costs the buyer nothing.
Where the seller's rent roll runs ahead of the documents
Annual base rent at September 30, 2026, each variance on its own scale
Source: Cedar Fork seller rent roll, leases, C-300 remeasurement letter and F-300 draft amendment (illustrative). Calculation by Compound, Reconciliation tab.
Takeaway: no executed lease supports $109.3k a year of the seller’s rent, C-300’s $8.6k and F-300’s $100.7k. With C-100’s $5.5k of timing, the seller’s rent roll sits $114.7k above documented rent on September 30.
Tenant estoppel certificates: what 15 tenants signed
The third step reads each tenant’s own signed account of its lease against the abstract and the rent roll.
A tenant estoppel certificate is the tenant’s signed statement of its lease, rent, deposit and any claims against the landlord, and the tenant cannot later contradict it against the buyer. Fifteen of the 17 tenants returned one.
| B | AE | AF | |
|---|---|---|---|
| 5 | Suite | Estoppel exceptions | Underwriting notes |
| 9 | B-200 | Base rent abated through January 2027; Additional Rent paid through 9/30/2026 | Rent roll carries $136,800 as in place |
| 12 | C-200 | $38,500 of $60,000 TI allowance unpaid; tenant claims right to offset against rent1 | Unfunded TI and offset claim not shown on rent roll |
| 13 | C-300 | None; certifies 9,200 SF per the remeasurement letter2 | Rent roll and OM still show 9,800 SF |
| 14 | C-400 | Not returned (outstanding per seller's tracker) | Ties to lease; no estoppel; expires 5/31/2027 |
| 23 | F-300 | Not returned (outstanding per seller's tracker)3 | Rent roll term and rate from the unsigned draft |
- 1C-200: 2.7 months of rent the tenant can withhold after closing; the seller funds it or credits $38,500
- 2C-300: the tenant's own certificate confirms the remeasured area
- 3F-300: the holdover tenant has signed nothing since its lease expired
C-200’s estoppel adds the one claim the leases could not show: the landlord still owes $38.5k of its TI allowance, and the tenant claims the right to take it out of rent. B-200’s confirms six months of free rent, August 2026 through January 2027, which the rent roll carries as rent in place.
Net of the free months and the $96,000 TI allowance, B-200’s net effective rent over its 66-month term is about $12.50 a square foot against a $14.25 face rate (undiscounted, our arithmetic from the lease’s rent schedule). B-200’s estoppel reports no landlord default and no offset. It also certifies that the $96,000 TI allowance in B-200’s lease has been paid in full, so B-200 needs no TI credit at closing. The two missing estoppels belong to F-300, the tenant with no signed lease, and C-400.
C-200 TI offset claim
$38,500
B-200 free rent after closing
$17,284
B-200 TI allowance paid
$96,000
Deposits unconfirmed
$17,593
Takeaway: the estoppels add two credits the rent roll hides, $38.5k for C-200’s TI and $17.3k of B-200 free rent after closing.
Rent roll vs T12: does the rent match the cash?
The fourth step checks the corrected rent roll against what the property actually billed in September.
The T12 is the trailing twelve months operating statement. It shows what came in, so once you adjust for free rent and anyone paying without a lease, it should match the rent roll.
| B | N | |
|---|---|---|
| 39 | TIE-OUT TO SELLER T12, SEPTEMBER 2026 (MONTHLY) | |
| 40 | Documented monthly base rent, executed leases | 241,854.17 |
| 41 | (-) B-200 abated month | -11,400.00 |
| 42 | (+) F-300 holdover payment, September 2026 | 8,387.50 |
| 43 | Expected billed base rent, September 2026 ($) | 238,841.67 |
| 44 | Seller T12 base rental revenue, September 2026 | 238,841.67 |
| 45 | Difference | 01 |
- 1The corrected rent roll explains every dollar of September billings
The tie also confirms F-300 from the cash side. Prairie Dental has paid $8.4k a month since June, the unsigned draft’s rate. Under the expired lease, holdover rent is 150% of the last month’s rent, about $13.0k a month, and accepting rent does not extend the term (Section 9.2).
Takeaway: the corrected rent roll explains every dollar billed in September, so it is the one to underwrite from.
WALT, rollover and loss to lease: how a buyer prices the rent roll
The fifth step reads the corrected rent roll the way the price will be set: how long the income lasts and where it sits against market.
WALT, the weighted average lease term, weights each lease’s remaining years by its rent. It is 3.0 years on the corrected rent roll at September 30, 2026, and 2.5 if A-100 uses its 2028 right (our arithmetic from Compound’s abstract).
Cedar Fork lease expirations from the corrected rent roll
Selected suites; eight leases expire in 2027 and 2028
Source: Cedar Fork leases and A-100 First Amendment (illustrative). Lease Abstract by Compound.
With A-100’s option, 134,800 square feet, 54% of the park, can roll by the end of 2028. The OM assumes every tenant renews at market with no downtime. The occupied suites sit 6.6% below the room’s lease comps, about $214k a year of loss to lease that comes back only as leases roll. B-100 cuts the other way: its renewal is fixed at $11.25 a foot for five years (Section 13.4), $46.7k a year below the seller’s own 2028 market rent.
Takeaway: over half the park can roll by 2028, and the OM prices none of that risk.
What the corrected rent roll does to the $48.0M ask
The last step turns the variances into value at the OM’s own 6.00% cap rate.
| Suite | Variance | Annual rent | Value at 6.00% cap |
|---|---|---|---|
| C-300 | Area remeasured, lost for good | $8,610 | $143,500 |
| F-300 | Extension never signed, at risk | $100,650 | $1,677,500 |
| Total | No executed lease | $109,260 | $1,821,000 |
| C-100 | Signed step shown early, timing only | $5,472 | none |
Takeaway: about $1.8M of the $48.0M ask rests on rent no executed lease supports, and a signed F-300 extension would restore most of it.
That is the rent roll’s part of the price only. The pro forma adds the rollover, the tax reset, the roof and the A-100 exit, and bids $46.4M. The closing items go to the seller’s counsel:
- B-200 free rent: seller credits $17.3k at a December 15, 2026 closing, recomputed on the actual date.
- C-200 TI allowance: seller credits $38.5k unless it funds the balance before closing.
- Security deposits: seller transfers $226.8k per the leases, of which estoppels confirm $209.2k.
- F-300: executed amendment and estoppel as a closing condition, or a holdback or price reduction.
- Estoppels from C-400 and F-300, and an updated C-200 estoppel without the offset exception.
- Seller certifies a corrected rent roll at closing.
Compound put the reconciliation on one page for the investment committee deck.
The corrected rent roll becomes the revenue line of the real estate pro forma, and the closing items carry into the due diligence checklist.
FAQ
What should a buyer ask the seller to certify about the rent roll at closing?
Ask for a certified rent roll: the seller represents that the rent roll is true, correct and complete as of a stated date, brought down at closing, with any exceptions listed. The certificate should cover free rent and abatements still running, unfunded TI and leasing commissions, amendments and side letters, termination and expansion rights, deposits held, and tenants in holdover or default. Reconcile the rent roll to the leases first, then negotiate the certificate around the variances you found.
How does a tenant estoppel differ from an SNDA?
An estoppel is a snapshot: the tenant certifies its lease, rent, deposit and claims as of a date, so it cannot later dispute those facts against the buyer or lender. An SNDA (subordination, non-disturbance and attornment agreement) looks forward: the tenant subordinates its lease to the lender’s mortgage, the lender agrees not to disturb the tenant if it forecloses, and the tenant agrees to recognize the new owner. Lenders often require both from major tenants. The estoppels are the buyer’s evidence and the SNDAs are the lender’s.
Should the rent roll tie to the T12?
Yes, once you adjust for timing. Annualized current-month base rent from the T12 should equal the rent roll’s contractual rent less abatements, plus anyone paying without a lease, give or take bumps that land mid-month. A gap that will not close usually means a lease the rent roll gets wrong or income the T12 books somewhere else.
Does the same check work on a multifamily rent roll?
The method is the same at unit scale: unit, tenant, lease dates, market rent, contract rent, concessions, deposits and balances, tied to the leases and the T12. The variances differ: concessions burning off, loss to lease across hundreds of units, model and down units, and delinquent tenants still shown as occupied. With hundreds of units, ask Compound to sample the leases and reconcile every unit to the ledger.
Can Compound read scanned leases and amendments filed in separate folders?
Yes. Compound reads the PDFs in a data room wherever they are filed and applies later documents, such as amendments, remeasurement letters and side letters, over the base lease. Every field in the abstract cites the document it came from, and where a value is missing from the room, such as an unamortized TI balance, Compound says so and adds it to the request list.
