Is a prospective commercial tenant creditworthy?

Description

Abstract: Smart landlords evaluate credit before entering a lease agreement with a new tenant — even those backed by well-known, longstanding corporations. This article discusses why financially stable, creditworthy tenants are essential for successful commercial real estate investments; which factors to consider when assessing creditworthiness; and how credit enhancements can make up for weak credit assessments. A sidebar discusses the use of third-party loan guarantees to bridge credit gaps.