The two that matter most
1. A current rent roll
Who is renting what, and on what terms. For each unit or space, a useful rent roll shows:
- Unit or suite identifier, and its size or type
- Current rent, and any concessions
- Lease start and end dates
- Security deposit held
- Whether the tenant is current or behind
2. A trailing-12-month statement (T12)
What the building actually collected and spent over the last twelve months — not a projection, and not a pro forma. Income on one side; property taxes, insurance, utilities, repairs, management, and marketing on the other. The difference is net operating income, and NOI is what a buyer divides by a cap rate to reach a price.
Why these two decide your price
Commercial property is valued on income. The rent roll proves what is coming in today, and the T12 proves what it costs to keep it coming in. Everything else in a diligence file is a check on those two numbers.
Helpful, but not blocking
- Copies of the leases themselves. Buyers eventually read them — renewal options, escalations, and termination rights all affect value.
- The current property tax bill. Taxes often reset after a sale, so buyers underwrite the new number rather than yours.
- The insurance policy and loss history. Insurance is one of the fastest moving expense lines in commercial real estate right now.
- Records of major repairs and improvements. A recent roof or new mechanicals are worth real money — but only if you can show them.
- Mortgage documents, if there is existing debt on the property.
- Utility bills, particularly where the owner pays rather than tenants.
If your records are incomplete
This is normal, especially for owners who self-manage or who inherited a building. A workable T12 can usually be rebuilt from tax returns and bank statements, and a rent roll can be reconstructed from leases and deposit records. The point is not perfect bookkeeping — it is giving a buyer something verifiable, because unverifiable income gets discounted.
What happens once you have them
A direct buyer can typically move from documents to a real number quickly, and explain the math behind it. You are free to decline — but you will at least know what the building is worth to someone buying it for its income, which is more than most owners ever find out.