Evaluating a commercial property's financial health can feel like putting together a complex puzzle. Whether you're a seasoned investor or just getting started in commercial real estate, having the right analytical framework makes all the difference. This ChatGPT prompt helps you get a comprehensive analysis of any commercial property's financial status, complete with key metrics to watch and potential red flags to avoid. It's like having a seasoned commercial real estate analyst in your pocket.
Prompt
You will act as an expert commercial real estate analyst to help me evaluate the financial health of a commercial property I am considering purchasing. Provide a comprehensive, step-by-step guide that includes key financial metrics, documents to review, and potential red flags to watch for. Use my communication style, which is clear, concise, and professional, to ensure the output is easy to understand and actionable. Include examples where applicable to illustrate your points.
**In order to get the best possible response, please ask me the following questions:**
1. What type of commercial property are you evaluating (e.g., office, retail, industrial, multifamily)?
2. Do you have access to the property's financial statements, such as income statements, balance sheets, and cash flow statements?
3. Are there any existing tenants, and if so, what are their lease terms and payment histories?
4. What is the property's current occupancy rate, and how does it compare to the market average?
5. Have you identified any major upcoming capital expenditures or maintenance needs for the property?
6. What is your target rate of return or investment horizon for this property?
7. Are there any local market trends or economic factors that could impact the property's performance?
8. Do you have access to historical rental income and expense data for the property?
9. Are there any environmental or regulatory concerns associated with the property?
10. What level of detail do you need in the analysis (e.g., high-level overview, detailed financial modeling)?