Asking price · area · basic land and building facts
Building Analysis
Do not rely on one price or one yield. Read the building through six separate axes, verify with practical tools, then connect the findings into one judgment.
01PRICE
02INCOME
03RIGHTS
04BUILDING
05LOCATION
06OPERATION
TOOLS · VERIFY
START WITH THE MATERIALS.01Sale data 02Lease data 03Rights data 04Building data 05Location data 06Operating data
Building analysis starts with the evidence.
An address or asking price alone is not enough. Separate the price, lease, rights, physical condition, location and operating evidence before you judge the property.Rent by unit · deposits · vacancy · contract status
Registry records and rights that may affect the transaction
Building register · completion year · use · major systems · repair history
Nearby rents · vacancies · demand base · competing buildings
Service charges · owner-paid costs · arrears · complaints · management history
HOW TO LOOK.
Do not decide “good” or “bad” too early.
Before opening a detailed axis, separate the question you are trying to answer. These are action cues for reading the evidence, not summaries of the detailed pages.
Price
Do not label the price cheap or expensive first. Record comparable transactions and the conditions that make them different.
Income
Do not stop at scheduled rent. Separate cash actually received, vacancy and owner-paid costs to see what remains.
Rights
Do not just list rights. Separate what will be released before closing, what may survive and what still needs verification.
Building
Look beyond age. Identify near-term repairs and replacements and translate them into future cash needs.
Location
Look beyond foot traffic. Identify who actually needs this space, where that demand comes from and whether it can persist.
Operation
Look beyond today’s yield. List the recurring management work required to keep that income in place.
Numbers and facts are not the same thing.
Many analysis errors start when two similar-looking numbers are treated as if they mean the same thing. Keep these pairs separate.
Asking price≠Supported price
The seller’s number is only a starting point. Comparable transactions and condition differences create the evidence for a price judgment.
Contract rent≠Actual income
Scheduled rent and cash received can differ because of vacancy, arrears, concessions or rent-free periods.
Maximum secured amount≠Actual debt
The registered maximum secured amount is not the current loan balance. Verify the outstanding debt separately.
Completion year≠Actual building condition
Age is a clue, not the conclusion. Maintenance history and system condition are more direct signals of future cost.
Foot traffic≠Tenant demand
People passing by are not automatically people who need space in this building.
Yield≠Ease of operation
The same yield can require very different levels of leasing, complaint handling, maintenance and tenant turnover.
Record the result in three states.
If you collapse six axes into one score, you lose sight of what still needs work. Keep confirmed facts, open questions and burdens separate.
Confirmed
Evidence or an on-site check is sufficient. Record it separately from assumptions.
Needs verification
The evidence is incomplete or must be checked again before closing. Leaving an item open is part of good analysis.
Burden to absorb
Repairs, vacancy or operating complexity may be real without automatically disqualifying the property. Decide whether you can absorb them.
A practical order for checking a building.
The order in which you collect evidence is slightly different from the six learning axes. Match the documents first, add field checks and comparables, keep unknowns open, then synthesize.
01Gather the basics
Bring the sale information and core building facts into one place so the subject property is clearly defined.
02Match the lease data
Compare unit-by-unit contracts with actual receipts and vacancy status.
03Cross-check public records
Compare registry and building-register records with actual ownership and use.
04Check the site
Verify physical condition, access, nearby vacancy and signs of day-to-day management that documents cannot show.
05Add comparables
Place nearby transactions, rents and competing spaces next to the subject to understand where its numbers sit.
06Keep unknowns visible
Do not force estimates for unverified items. Move them to a separate follow-up list.
07Synthesize last
Review confirmed facts, open questions and burdens together before deciding whether your evidence is sufficient.
Seven review points for building analysis
These are guidance topics, not working calculators. Check the figures and underlying evidence for each point before making a decision.
Yield Review
WHENWhen you need a quick view of income relative to price
Estimate the income structure from rent and recurring costs.
Loan & Leverage Review
WHENWhen you need to see how debt ratio and interest affect cash flow
See how loan size and interest rate change financing cost.
Price Comparison
WHENWhen you need to place the subject next to comparable transactions
Place the subject price against comparable transactions and condition gaps.
Price per Area Review
WHENWhen properties of different sizes need a common unit
Convert price and area to a common unit for comparison.
Vacancy Impact Review
WHENWhen you need to test income after periods of vacancy
Estimate what remains after periods with no rent.
Registry Rights Check
WHENWhen you need to organize rights into release, survival and follow-up items
Review registry rights in a practical transaction order.
Analysis Summary
WHENWhen you need to collect the six-axis findings without turning them into one score
Organize the findings from all six axes in one place.
FINAL CHECK.01 02 03 The purpose of building analysis is not to give you the answer,
but to show what to verify and what evidence should support the decision.
Finish with three final checks.
At the end, adding more items matters less than checking what your judgment is actually based on.
Do I have evidence?
Can I point to documents, market data or an on-site check that explains my judgment?
What is still open?
Keep unverified items on a separate list and resolve them before the transaction.
Can I absorb the burden?
Do not reduce cost, vacancy, rights or operating burden to good/bad. Decide whether it is acceptable for you.
but to show what to verify and what evidence should support the decision.