What is the primary purpose of performing a rent roll analysis?

• A. To determine roof condition
• B. To assess tenant mix, lease terms, and revenue concentration
• C. To evaluate construction costs
• D. To measure land value

Answer: (B)

Rent roll analysis focuses on income stability by examining who is leasing space, how long their leases run, and how much they pay. This helps you see the tenant mix—whether revenue comes from many tenants or a few large ones—and how lease terms are structured, including remaining term, renewal options, escalations, and current rents. Together, these details reveal revenue concentration and rollover risk: if a major tenant leaves or a lease expires, how much cash flow could be affected in the near term. That’s why this analysis is done—to project current and near-future income reliability and underwriting risk.

Other items like roof condition, construction costs, or land value are outside the rent roll’s focus and relate to property condition, capital expenditures, or land valuation, not to ongoing revenue streams.