Stop relying on broker pro-formas.Audit the actuals.
Independent NOI verification for commercial acquisitions. We analyze your deal against market cap rates, stress-test the DSCR, and expose hidden risk in the rent roll— before you sign.
Broker Pro-Forma NOI
$312,000
Audited NOI
$267,400
14.3% variance
Why Commercial Buyers Need Independent Audits
Broker-provided pro-formas consistently overstate income and understate expenses.
Inflated Pro-Formas
Sellers assume 95% occupancy and below-market expenses. Reality is often 10-20% worse.
Cap Rate Compression
A 0.5% cap rate difference on a $2M property = $100K+ in overpayment. Verify the market rate.
Lease Expiration Risk
40% of the rent roll expiring in 18 months? That's not income—that's turnover cost.
The Commercial Audit Framework™
Every report audits your deal across three critical dimensions: Income, Expenses, and Market Compliance.
Audit Area 01
Income Verification
We verify Gross Potential Rent against market comparables, audit expense reimbursements (NNN pass-throughs), and apply realistic vacancy & credit loss assumptions—not the seller's fantasy numbers.
- Gross Potential Rent (GPR) analysis
- Expense reimbursement verification
- Vacancy & credit loss stress test (5-10%)
- Other income audit (parking, storage, etc.)
Audit Area 02
Expense Analysis
Operating expenses make or break commercial deals. We benchmark every line item against market norms and flag understated costs that will crush your returns post-close.
- Property taxes & insurance verification
- CAM (Common Area Maintenance) analysis
- Management fee benchmarking (3-6%)
- Replacement reserves adequacy
Audit Area 03
Cap Rate Compliance
Is the asking price "compliant" with local market cap rates? We calculate implied value using the income approach and show you exactly how much (or little) margin you have.
- Implied Value = NOI ÷ Market Cap Rate
- Asking vs. market cap rate comparison
- Risk-adjusted cap rate analysis
- Price variance calculation
Audit Area 04
DSCR & Risk Analysis
Lenders require DSCR above 1.25x. We stress-test your deal against rate hikes and vacancy spikes to see if it survives real-world conditions— not just the best-case scenario.
- Debt Service Coverage Ratio calculation
- Interest rate sensitivity (+1%)
- Vacancy stress test (+5%)
- Lease expiration risk analysis
The Audit Verdict
Every report delivers a clear PASS or HOLD verdict based on quantitative thresholds— not subjective opinions.
PASS
Deal meets thresholds
- DSCR ≥ 1.25x
- Cap Rate ≥ Market Cap Rate
- Survives stress test scenarios
HOLD
Proceed with caution
- DSCR below 1.25x
- Cap Rate below market (overpaying)
- High lease expiration concentration
The Commercial Triple-Score™
Three scores that tell the complete story of your commercial deal.
Income Score
Measures lease stability, tenant credit quality, and rent vs. market rates.
- Lease term remaining
- Tenant diversification
- Below/above market rents
Equity Score
Evaluates forced appreciation potential through operational improvements.
- Below-market rent upside
- Value-add opportunities
- Price vs. implied value
Risk Score
Assesses downside protection through DSCR buffer and market stability.
- DSCR cushion
- Lease expiration spread
- Market vacancy rate
Built for Every Lease Structure
Our audit framework adapts to the specific expense allocation of your deal.
Triple-Net (NNN)
Tenant pays taxes, insurance, and CAM. Your NOI analysis focuses on base rent stability and reimbursement verification.
- Lowest landlord exposure
- Highest tenant responsibility
- Credit quality critical
Modified Gross
Expenses split between landlord and tenant. We audit base year provisions and expense stop calculations.
- Shared expense model
- Base year analysis
- Escalation clauses
Full Service
Landlord covers all operating expenses. Expense benchmarking is critical—understated costs destroy returns.
- All-in rent analysis
- Expense ratio benchmarking
- Highest landlord risk
How the Audit Works
From pro-forma to verdict in under 10 minutes.
Enter the Deal
Input property details, income figures, expenses, and financing terms from the broker's pro-forma.
We Audit Everything
Our framework stress-tests income, benchmarks expenses, and calculates cap rate compliance.
Get the Verdict
Receive a clear PASS or HOLD verdict with the Commercial Triple-Score™ and sensitivity analysis.
Important Disclaimer
The Commercial Audit™ is an educational tool designed to help commercial real estate investors analyze income-producing properties. It provides data-driven analysis of NOI, cap rates, DSCR, and other metrics to support—not replace—professional due diligence.
This tool does not constitute financial, investment, legal, or tax advice. Commercial real estate transactions involve significant complexity including lease analysis, environmental assessments, zoning compliance, and tenant creditworthiness that require professional evaluation. Always consult qualified professionals including commercial real estate attorneys, CPAs, and licensed brokers before making investment decisions.
OfferGuide does not guarantee the accuracy of user-provided data, market cap rate estimates, or projected returns. Past performance does not indicate future results. All investments carry risk, including potential loss of principal.
Frequently Asked Questions
The Commercial Audit works for retail, office, industrial, mixed-use, and multi-family properties with 5+ units. Single-family rentals and small multi-family (2-4 units) are better suited for our Investment module.
You provide the market cap rate based on your research or broker guidance. We use this as the benchmark to determine if the asking price is 'compliant'—meaning the deal offers fair returns for the asset class and risk profile.
Broker pro-formas are marketing documents designed to sell. They often assume best-case vacancy (5%), understated expenses, and above-market rent growth. Our audit applies conservative assumptions and stress-tests the deal against realistic scenarios.
Two primary conditions: (1) DSCR below 1.25x, which means the property doesn't generate enough cash flow to comfortably service debt, or (2) Cap rate below market, which means you're overpaying relative to similar deals.
Our audit is a screening tool to help you decide whether to pursue a deal. It's not a substitute for professional due diligence, Phase I environmental reports, or legal review—but it will save you from wasting time on overpriced deals.
The math is exact—NOI, cap rate, DSCR, and sensitivity analysis are calculated to the penny. The accuracy depends on the inputs you provide. Garbage in, garbage out. We recommend using actual historical financials when available.
Ready to audit your deal?
Stop relying on broker math. Get independent verification before you commit.
Start Commercial AuditAccess the full Commercial Audit™ report using 1 OfferGuide Credit. Credits can be used across any of our Home, Land, Investment, or Commercial modules.