Rent Roll Normalization

Rent Roll Normalization

The canonical skill for rent roll parsing, standardization, and analysis. Any command that works with a rent roll MUST invoke this skill for normalization before analysis.

Trigger Conditions

Activated when any command needs:

• Rent roll parsing from Excel or PDF
• Standardized rollover/expiration schedule
• WALT calculation
• Tenant concentration analysis
• Mark-to-market comparison

Business Context

Rent rolls arrive in dozens of formats -- every owner, broker, and property manager uses different column names, date formats, and rent conventions. This skill normalizes them into a standard schema so downstream analysis is consistent.

Source Hierarchy

1. Rent roll from executed leases / property management system (primary)
2. Rent roll from offering memorandum (secondary -- may be seller-optimized)
3. User-typed summary (last resort)

Workflow

Step 1: Parse and Identify Columns

Map source columns to standard fields:

• tenant_name -- tenant / lessee name
• suite -- suite or unit number
• square_feet or units -- leased area
• lease_start -- commencement date
• lease_end -- expiration date
• annual_rent -- annual base rent (convert from monthly/PSF if needed)
• rent_per_sf -- calculated if not present (annual_rent / SF)
• escalation -- annual escalation rate or schedule
• options -- renewal options (term, notice, rate)
• expense_structure -- NNN, gross, modified gross

Step 2: Normalize Units

• Convert all rents to annual and per-SF
• Convert all dates to ISO format
• Flag rows with missing critical fields
• Separate occupied from vacant suites

Step 3: Rollover Schedule

• Group expirations by year and quarter
• Calculate SF and rent expiring per period
• Flag years with >20% rollover as concentrated

Step 4: WALT (Weighted Average Lease Term)

• WALT by rent: Σ(remaining_term × annual_rent) / Σ(annual_rent)
• WALT by SF: Σ(remaining_term × SF) / Σ(SF)

Step 5: Tenant Concentration

• Top tenant by rent and SF (percentage of total)
• Top 5 and top 10 concentration
• HHI (Herfindahl-Hirschman Index) for quantitative concentration

Step 6: Mark-to-Market (if market rents provided)

• Compare in-place rent/SF to market rent/SF per tenant
• Calculate total portfolio mark-to-market opportunity (positive) or risk (negative)
• Flag tenants significantly above or below market (>15% deviation)

Output Structure

Standardized rent roll with all normalized fields, plus summary tabs:

• Rollover schedule (by year)
• Tenant concentration table
• Mark-to-market analysis (if market rents available)
• Data quality flags

QA Checks

• Total occupied SF + vacant SF = total building SF (within 2%)
• Sum of tenant rents = reported gross revenue (within 2%)
• No duplicate tenant/suite combinations
• All leases have both start and end dates
• Rent per SF is reasonable for property type and market

Edge Cases

• Month-to-month tenants: Treat as expiring in current period for rollover purposes
• Master lease / sublease: Flag but don't double-count SF
• Ground lease: Separate from building leases
• Multifamily: Unit-level with unit type, not tenant name. Use unit mix instead.

Standards References

• NCREIF/PREA asset-level reporting (rent roll data fields)