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From leasing-commercial
Assesses tenant creditworthiness from financial statements, computes DSCR, current ratio, debt-to-equity, estimates default probability, and recommends security structures or covenants for leases.
npx claudepluginhub reggiechan74/vp-real-estate --plugin leasing-commercialHow this skill is triggered — by the user, by Claude, or both
Slash command
/leasing-commercial:tenant-credit-analystThe summary Claude sees in its skill listing — used to decide when to auto-load this skill
Tenant credit analysis determines:
scripts/Credit_Analysis/Tests/test_credit_analysis.pyscripts/Credit_Analysis/WORKFLOW_DEMONSTRATION.mdscripts/Credit_Analysis/__init__.pyscripts/Credit_Analysis/credit_analysis.pyscripts/Credit_Analysis/credit_inputs/my_company_llc_2025-10-31_input.jsonscripts/Credit_Analysis/credit_inputs/my_company_llc_2025-10-31_results.jsonscripts/Credit_Analysis/credit_inputs/sample_tenant_2025-10-31_input.jsonscripts/Credit_Analysis/credit_inputs/sample_tenant_2025-10-31_results.jsonscripts/Credit_Analysis/run_credit_analysis.pyscripts/shared_utils/README_FINANCIAL_UTILS.mdscripts/shared_utils/__init__.pyscripts/shared_utils/financial_utils.pyscripts/shared_utils/land_assembly_utils.pyscripts/shared_utils/negotiation_utils.pyscripts/shared_utils/report_utils.pyscripts/shared_utils/risk_utils.pyscripts/shared_utils/schemas/comparable_sales_input_schema.jsonscripts/shared_utils/stakeholder_utils.pyscripts/shared_utils/timeline_utils.pyEvaluates tenant creditworthiness and concentration risk for retail, office, industrial assets. Produces WALT-weighted ratings, default probability tables, HHI, co-tenancy analysis, guaranty assessments.
Reviews commercial lease terms, structures net/triple-net/modified-gross deals, evaluates renewal options, analyzes TI and free rent, advises on landlord-tenant rights, and prepares VTS-style approval memos.
Performs fast, rigorous analysis of commercial real estate leases, tenant credit, and deals with politically aware communication.
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Tenant credit analysis determines:
Critical Insight: Rent is worthless if tenant defaults. Credit analysis is the first step in lease negotiation.
Definition: Ability to cover rent from operating cash flow.
Formula:
DSCR = Net Operating Income (NOI) ÷ Annual Rent
Where:
NOI = EBITDA or Operating Cash Flow
Annual Rent = Base Rent + Estimated Operating Costs
Interpretation:
Minimum Standard: 1.25-1.50 for most industrial/office leases
Definition: Ability to pay short-term obligations (including rent).
Formula:
Current Ratio = Current Assets ÷ Current Liabilities
Interpretation:
Minimum Standard: 1.5 for most commercial tenants
Definition: Financial leverage and solvency.
Formula:
Debt-to-Equity = Total Liabilities ÷ Shareholders' Equity
Interpretation:
Context: Varies by industry (capital-intensive businesses have higher D/E)
Definition: Liquidity cushion to absorb short-term fluctuations.
Formula:
Working Capital = Current Assets - Current Liabilities
Interpretation:
Rule of Thumb: Working capital should exceed 6-12 months of rent
Required documents:
Preferred: Audited or review engagement (CPA prepared) Acceptable: Notice to Reader (compilation) Red Flag: Internally prepared (no CPA oversight)
Time Period: Most recent 2-3 years
Liquidity Ratios:
Leverage Ratios:
Profitability Ratios:
Cash Flow Ratios:
Compare current year vs. prior years:
Compare tenant's ratios to industry norms:
Beyond numbers:
Assign credit grade:
A+ / A / A-: Excellent credit (Fortune 500, strong financials)
B+ / B / B-: Good credit (solid financials, some leverage acceptable)
C+ / C / C-: Acceptable credit (requires standard security: deposit)
D+ / D / D-: Marginal credit (requires enhanced security: deposit + guarantee)
E: Poor credit (reject or require full guarantee + large deposit)
Based on credit grade:
Grade A: Minimal security (1-2 months deposit or waive) Grade B: Standard security (3 months deposit) Grade C: Enhanced security (6 months deposit or partial guarantee) Grade D: Strong security (12 months deposit + personal guarantee) Grade E: Maximum security (full personal guarantee + 12 months deposit) or reject
Qualified Audit Opinion:
Going Concern Warning:
Negative Equity:
Negative Working Capital:
Declining Revenue (2+ years):
Losses (Net Income < 0):
Negative Operating Cash Flow:
High Capex Relative to Cash Flow:
High Debt Service:
Frequent Address Changes:
Litigation / Judgments:
Tax Liens / Garnishments:
Multiple Related-Party Transactions:
Customer Concentration:
50% of revenue from 1-2 customers
Situation: Manufacturing company applies for 10,000 sf industrial space at $8/sf/year = $80,000/year rent. Submits 3 years of financial statements.
Analysis:
Output:
Credit Grade: B+
Security Recommendation: 3 months rent deposit ($20,000)
Lease Term: 5 years acceptable
Covenants: Annual financial statement requirement
Recommendation: APPROVE with standard security
Situation: Technology startup (2 years old) applies for office space. Limited operating history, venture capital funded.
Analysis:
Output:
Credit Grade: C- (early stage, unprofitable)
Security Recommendation:
- 12 months rent deposit ($120K), OR
- Personal guarantee from founders + 6 months deposit
Lease Term: 3 years maximum (matches runway)
Covenants: Quarterly financial statements, maintain $500K minimum cash balance
Recommendation: CONDITIONAL APPROVAL (require enhanced security)
Situation: Existing tenant (8 years in building) requests 5-year renewal. Recent financials show declining performance.
Analysis:
Output:
Credit Grade: C+ (was B+, downgraded)
Security Recommendation:
- Increase deposit from 3 months to 6 months
- Add financial covenant: Maintain DSCR > 1.25
- Quarterly reporting requirement
Lease Term: 3 years (shorter than requested 5 years)
Rent: Below-market renewal to support recovery
Recommendation: APPROVE RENEWAL with enhanced security (better than vacancy)
Situation: Tenant has weak credit (DSCR 1.1), but parent company offers corporate guarantee.
Analysis - Guarantor:
Output:
Tenant Credit Grade: D
Guarantor Credit Grade: A-
Security Recommendation:
- Absolute and unconditional corporate guarantee from parent
- 3 months deposit (standard)
Lease Term: 5 years acceptable (based on guarantor strength)
Recommendation: APPROVE (rely on parent guarantee, not tenant)
This skill is automatically loaded when:
/tenant-credit, /default-analysis*financial*statement*, *balance*sheet*, *income*statement*Related Commands:
/tenant-credit <financial-statements-path> - Full credit analysis with scoring and security recommendations/default-analysis <lease-path> <default-description> - Assess default scenarios and landlord remediesTenant: Acme Distribution Inc. Space: 20,000 sf industrial warehouse Proposed Rent: $10/sf/year = $200,000/year
Financial Data (Most Recent Year):
Ratio Analysis:
DSCR = $350,000 ÷ $200,000 = 1.75 ✓ (Acceptable, above 1.50 minimum)
Current Ratio = $1,200,000 ÷ $600,000 = 2.0 ✓ (Strong liquidity)
Debt-to-Equity = $1,400,000 ÷ $1,100,000 = 1.27 ✓ (Moderate leverage)
Working Capital = $1,200,000 - $600,000 = $600,000 ✓ (3x annual rent)
Operating Margin = $350,000 ÷ $5,000,000 = 7% (Typical for distribution)
ROE = $200,000 ÷ $1,100,000 = 18% ✓ (Strong return)
Trend Analysis (3 years):
Credit Decision:
Credit Grade: B+
Strengths:
- Strong DSCR (1.75x)
- Excellent liquidity (2.0 current ratio)
- Consistent revenue growth
- Deleveraging trend
Weaknesses:
- Moderate leverage (D/E 1.27)
- Industry-typical low margins
Security Recommendation: 3 months rent deposit ($50,000)
Lease Term: 5 years
Covenants: Annual financial statements, maintain DSCR > 1.25
Personal Guarantee: Not required
RECOMMENDATION: APPROVE
Tenant: Struggling Retail Corp. Financial Data:
Red Flags Identified:
Credit Decision:
Credit Grade: E (High Risk)
RECOMMENDATION: REJECT
Rationale:
- Insufficient cash flow to cover rent
- Insolvency risk (negative working capital)
- Auditor going concern warning
- Declining business trend
Alternative: Only consider if:
- Personal guarantee from solvent guarantor (net worth > $1M)
- 12 months rent deposit ($240K)
- Short-term lease (1 year)
- Above-market rent to compensate for risk
Skill Version: 1.0
Last Updated: November 13, 2025
Related Skills: commercial-lease-expert, indemnity-expert, default-and-remedies-advisor, effective-rent-analyzer
Related Commands: /tenant-credit, /default-analysis (VTS approval memos are now generated via the commercial-lease-expert skill, which auto-loads on relevant questions)