When you’re preparing to sell or refinance a commercial asset, the strength of the deal rests heavily on one thing: the leases.
Buyers and lenders don’t just want to see a rent roll. They want to know what’s really in the paper. What are the tenants actually paying? What rights do they have to terminate or expand? Are there any clauses that could trigger risk or uncertainty down the road?
And yet — this is often where deals get stuck. Lease files are scattered, terms aren’t standardized, and critical clauses get overlooked until late in diligence. At that point, you're either scrambling to clarify — or eating a discount.
The good news? You can avoid all that by getting ahead of it. Here's how to prepare a single asset's leases for a clean, confident transaction.
Step 1: Consolidate All Lease Documents
Even for a single property, lease documentation can be fragmented. Make sure you’ve gathered:
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Fully executed lease agreements
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All amendments, renewals, and extensions
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Side letters or addenda
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Estoppels (if available)
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Any notices or legal correspondence that modify lease terms
This is your source of truth. And if you're missing anything, it's far better to track it down now than in the middle of buyer diligence.
Prophia Tip: Upload your leases into Prophia, and the platform will automatically detect missing amendments, flag inconsistencies, and connect clauses to their original language.
Step 2: Surface the Deal Drivers — and the Risks
Once your documents are centralized, the next step is surfacing the terms that matter most to investors or lenders. That includes:
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Lease start/end dates and term remaining
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Base rent, escalations, and rent abatement
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Renewal, expansion, and termination options
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Sublease rights and exclusivity clauses
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Tenant improvement allowances or concessions
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Opex responsibilities (CAM, taxes, insurance)
You’re not just collecting data — you’re telling the story of the asset’s cash flow and stability. If there’s a tenant with a termination right, or a rent bump coming soon, that’s information you want to disclose clearly.
Prophia Advantage: Our AI doesn’t just extract the clause — it links every data point directly to the source document, giving you (and your buyer) full auditability and peace of mind.
Step 3: Standardize Lease Abstracts for Clarity
With multiple tenants, even in a small building, it’s easy for terms to get lost in translation. A standardized abstract format ensures every lease is reviewed consistently, and nothing important gets missed.
Each abstract should include:
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Tenant and suite info
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Key dates (commencement, expiration, renewal options)
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Base rent and escalation structure
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Expense responsibilities
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Special clauses or carve-outs
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Notes on amendments or side letters
Creating this from scratch can take hours — and often results in inconsistencies.
That’s why many CRE owners use Prophia Essentials. You can upload your leases, and Prophia will generate clean, searchable abstracts that link back to the original clauses — in just a few clicks.
Step 4: Build a Share-Ready Deal Package
Finally, compile everything into a simple, professional package. This makes it easy for buyers, brokers, or lenders to evaluate the asset without chasing down data. Include:
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Full lease documents
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Abstracts for each tenant
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A current rent roll
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Stacking plan (if relevant)
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Notes on any risks or lease events (expirations, renewals, etc.)
Think of this like packaging your asset for due diligence before diligence even starts. The cleaner the handoff, the faster the deal moves — and the fewer surprises later.
Why This Work Pays Off
A messy lease file doesn’t just create friction — it creates doubt. And in today’s market, doubt gets priced in.
When you prep your leases ahead of time, you're not just checking a box. You're showing the buyer or lender that this asset is well-managed, stable, and worth what you're asking.
Prophia Essentials makes that process faster, easier, and more reliable — helping you go to market with confidence.
Want to see how it works?
Upload your leases today and get clean, AI-powered abstracts in days — not weeks.