How to Review a Single-Tenant Net Lease Offering Memorandum

A single-tenant net lease (STNL) property is priced on one tenant and one lease. So the first pass on the broker’s offering memorandum (OM) is mostly about the lease: who stands behind it, how much term is really left, what the landlord still pays for, and whether the stated cap rate uses current rent. Below is what to pull from the OM, six checks to run before underwriting, and a worked example.

What to pull from the OM

Item	Why it matters
Tenant name and lease guarantor (exact entity)	The guarantor named in the lease documents, not the brand on the sign, is who owes the rent if the tenant does not pay
Lease type and landlord responsibilities	“NNN” in a headline can still leave roof, structure, or parking with the landlord
Lease commencement and expiration dates	Remaining term drives value and financing
Current rent and scheduled increases (dates and amounts)	Decides whether the stated NOI and cap rate are current or future
Renewal options (number, length, rent)	Options belong to the tenant; they are not guaranteed income
Price, NOI, stated cap rate	Lets you recompute the cap rate
Other lease rights the OM mentions (for example, a right of first refusal or go-dark language)	Can limit a sale or the property’s use later

Six checks before you go further

1. Read the guarantor’s exact name. A corporate parent, a subsidiary, and a franchisee are different credits, and the OM’s description is marketing. Whether a company actually guarantees this lease is shown only by the lease and guaranty documents for this deal. If the named guarantor is a public company, its own annual and quarterly reports can be read on SEC EDGAR; those filings describe the company, not the terms of this lease.
2. Recompute the remaining term on a stated date. An OM may give “years remaining” as of the date it was prepared. Use the lease expiration date and write down the date of your calculation.
3. Separate NNN from NN. Check the landlord-responsibilities section line by line. Leave any responsibility the OM does not mention as unknown and ask for the lease.
4. Match the cap rate to current rent. Recompute NOI ÷ price with the rent in effect on your calculation date. If the stated cap only works with a future rent step, note the date of that step.
5. Treat options as options. Value the lease to its current expiration first; renewals are the tenant’s choice.
6. Leave gaps blank and list what to request. Typical next documents are the lease and amendments, the guaranty, an estoppel certificate, and any tenant reporting the lease requires. Do not fill missing items with assumptions in your first-pass notes.

Worked example: Elm Street Pharmacy (synthetic)

Synthetic example for this page. The property, figures, and dates are invented; it is not a listing or a client deal. Calculations are as of October 24, 2026.

Asking price	$3,000,000
NOI stated in the OM	$180,000
Stated cap rate	6.00% ($180,000 ÷ $3,000,000; matches)
Lease expiration	January 31, 2031
OM text	“7 years remaining”
Scheduled rent increase	10% on February 1, 2027

• Remaining term as of October 24, 2026: to January 31, 2031 is 1,560 days, about 4.3 years, not 7. The OM’s figure was likely written at an earlier date.
• Cap rate on the future rent: after the February 1, 2027 increase, NOI would be $198,000, which is 6.60% on the same price. Check which NOI the broker used.
• Still unknown from the OM alone: landlord responsibilities beyond the summary, the guarantor entity in the lease documents, and option rents.

What CRE Pipeline does with an STNL OM

Upload the OM as a PDF and CRE Pipeline builds a deal record from the figures present in the file, such as price, NOI, cap rate, building size, and year built. Fields the OM does not state stay empty. Each deal has an AI chat scoped to its documents. Chat answers can include a Sources block naming the document used; check important figures against the original PDF. This does not promise a page citation for every extracted field or a correct citation in every answer.

In our own test of the free first-document path with a broker OM for a single-tenant net-lease retail property, the chat answered a remaining-lease-term question and cited the page it used. That is one internal test, not a measurement of accuracy.

What it does not do: it does not check a guarantor’s credit, read a lease or guaranty you have not uploaded, or reconcile the OM with other documents. It is not an underwriting model. Our internal checks of the free path so far use single-tenant net-lease retail OMs; other property types are not separately verified here.

Related

• How to analyze a commercial real estate offering memorandum
• How to extract data from an offering memorandum and check it
• Docs: what is extracted · Pricing