Buying a Office with an existing Tenant lease
Hi,
We are evaluating an Office space for sale with an existing tenant in place. Tenant signed a 5-yr lease with one 5-yr option to extend and right now, they are in the first year of lease. Tenant is a national franchise chain and they are doing well nation wide. We want to make sure tenant doesn't break the lease. Right now the lease agreement says they can break the lease with 2-month rent payment.
Generally for retail spaces, we would consider tenants Sales volume, P&L to access the viability of tenant's business. This Office tenant may not be open give these details to us.
What due diligence can we check with this tenant? Any suggestions?
Thanks