(513) 621-1031 info@NetLeaseX.com
  1. Home
  2.  » 
  3. Property Financing
  4.  » 
  5. Industrial
  6.  » Loan Underwriting Guidelines

Industrial – Loan Underwriting Guidelines

Please incorporate the below minimum guidelines when you prepare and submit your proforma for underwriting approval.

 Rental Income:Based upon current rent roll annualized with vacant space calculated at market rents
(+)Other Income:Must be supported by historical collections
(-)Vacancy:Equal to the greater of the actual or a minimum of 10%
(-)Management Fee:Equal to the greater of the actual management fee of 5%
(-)Capital Reserves:Typically $0.15 per square foot minimum depending upon property age and condition
(-)Leasing and Tenant Improvement Reserves:Reserves subject to market rates applied to rollover tenants, commissions and tenant improvements.  Additional reserve deposits may be required based on anticipated rollover costs.
 Equals:Net operating income