Retail Property Lease and Rent Roll Review in Alberta

1. Preserve the executed document set

Collect leases, amendments, renewals, assignments, guarantees, indemnities, notices, waivers and material side agreements. Index the parties, premises, date, effective period, signatures and relationship between documents.

Do not rely on a prior abstract when the underlying lease package has changed. Preserve missing or unsigned records as exceptions for counsel and transaction review.

• Executed lease
• Amendments and renewals
• Assignments
• Guarantees and security
• Notices and waivers
• Document exception log

2. Create a counsel-reviewed abstract

Abstract premises, area, term, options, base rent, percentage rent, additional rent, use, exclusive-use rights, co-tenancy, assignment, repair, insurance, signage, default, termination and other material provisions. Cite the source section for every summarized term.

Lease interpretation and enforceability belong to counsel. The abstract should expose provisions for review, not convert complex or conflicting language into an unsupported conclusion.

3. Reconcile premises and area

Match the rent roll premises, unit numbers and area to lease exhibits, plans and current occupancy. Identify storage, patio, drive-through, kiosk, pad, common and expansion rights separately.

State the measurement source and convention. A billed area can be contractually relevant without proving the physical area under another measurement standard.

4. Tie base and percentage rent to evidence

Schedule base rent and escalations by lease year from the executed documents, then reconcile billed amounts and collections. For percentage rent, identify the defined sales measure, breakpoint, rate, reporting period, exclusions, audit rights and actual reported amounts where disclosure is authorized.

CRA identifies percentage rent as part of commercial rent for GST/HST treatment in its guidance. Tax treatment and lease calculations should be confirmed for the actual tenant and transaction.

5. Reconcile additional rent and recoveries

Map property taxes, insurance, common-area costs, utilities, management and other recoveries to the lease language. Compare annual estimates, actual costs, proportionate shares, caps, exclusions, gross-up provisions, administration charges and completed reconciliations.

Separate recoverable, non-recoverable, disputed and unbilled amounts. A current estimate is not a completed reconciliation and should not be presented as permanent income.

6. Identify options, exclusives and co-tenancy provisions

Schedule renewal, expansion, contraction, purchase, first-refusal, exclusive-use, prohibited-use, operating-covenant, anchor and co-tenancy provisions with their notice dates and source sections. Record whether notices have actually been delivered.

These provisions can be highly fact-dependent. Counsel should determine interpretation, enforceability, triggers, remedies and effect on the proposed sale; the rent roll should not reduce them to a yes-or-no marketing badge.

7. Reconcile security, arrears and concessions

Organize deposits, letters of credit, guarantees and other security with custody, expiry and transfer requirements. Tie arrears, credits, abatements, free rent, allowances and payment arrangements to the tenant ledger and governing documents.

Keep disputed amounts, write-offs and collection arrangements visible. Counsel and the closing accountant should determine enforceability, transfer and adjustment treatment.

8. Schedule landlord work and tenant obligations

Record outstanding allowances, landlord work, delivery conditions, repair, HVAC, roof and structure, utilities, signage, restoration and permit responsibilities. Link each obligation to the lease, work letter, invoice, permit or correspondence.

Separate completed, committed, disputed and estimated items. Future capital and leasing costs should remain explicit in buyer underwriting rather than being hidden inside a single NOI adjustment.

9. Protect tenant and personal information

Stage financial statements, sales reports, guarantor information, banking details, contacts and other sensitive records according to transaction purpose and buyer qualification. Alberta's PIPA should inform collection, use, disclosure, access, safeguards and retention.

A coded initial rent roll can communicate material lease economics without exposing unnecessary personal information. Confidentiality agreements do not eliminate the need for proportionate disclosure.

10. Produce a reconciled exception schedule

The output should show the contractual term, billed amount, collected amount, source, verification status and unresolved issue for each tenant. Maintain an exception log for missing documents, inconsistent areas, notices, disputes, arrears and uncompleted work.

This guide is an educational document-control framework. It is not a lease interpretation, legal opinion, audit, tax conclusion, privacy assessment, appraisal or guarantee of tenant payment or renewal.