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Office IC Memo Writer

Write an investment committee memo for an office acquisition, refinance, recapitalization, or hold/sell decision.

When to Use This Skill

Use this skill when you have completed office market, lease, rent roll, rollover, tenant credit, TI/LC, underwriting, and financing analysis and need a decision memo that makes the risk clear.

What You'll Need to Provide

  • Deal summary and proposed transaction
  • Market and flight-to-quality study
  • Rent roll / stacking plan analysis
  • Lease abstract findings
  • Rollover and occupancy-cost analysis
  • TI/LC underwriting model
  • Tenant credit analysis
  • Financing fit analysis
  • Sponsor thesis, pricing, hold period, and exit plan
  • Known open diligence items

Mission

Synthesize office diligence into a clear go / conditional go / no-go memo that separates durable income from speculative lease-up and highlights tenant, capital, lender, and exit risks.

Strategy

Step 1: State the Decision

Open with:

  • proposed action
  • price or basis
  • capital stack
  • expected hold period
  • target return
  • recommendation

Step 2: Explain the Office Thesis

Summarize:

  • why this building can win tenants
  • why this basis is attractive
  • what must happen operationally
  • what can go wrong

Step 3: Present Market Position

Use the market study to explain:

  • submarket regime
  • prime vs commodity dynamics
  • competitive set
  • rent and concession reality
  • exit liquidity

Step 4: Present Rent Roll and Lease Risk

Use rent roll, stacking plan, and lease abstract findings:

  • WALT
  • major tenants
  • rollover
  • options
  • vacancy quality
  • signed-not-commenced exposure
  • lease provisions affecting value

Step 5: Present Underwriting

Show:

  • in-place NOI
  • stabilized NOI
  • leasing costs
  • cash flow after TI/LC
  • debt sizing
  • returns
  • sensitivities

Step 6: Present Financing and Exit

Explain:

  • likely lender lane
  • debt constraints
  • reserves
  • maturity/refinance risk
  • exit buyer and exit cap logic

Step 7: State Risks and Mitigants

Every key risk needs:

  • severity
  • evidence
  • financial impact
  • mitigant or open diligence item

Step 8: Recommend Conditions

For conditional approval, list conditions precedent:

  • lease document delivery
  • tenant estoppels
  • lender term sheet
  • capex inspection
  • leasing reserve
  • tenant renewal confirmation
  • price retrade

Output Format

# Office Investment Committee Memo
## Property:
## Transaction:
## Recommendation: GO | CONDITIONAL GO | NO-GO

### 1. Executive Decision
- Recommendation:
- Price / basis:
- Capital required:
- Target returns:
- Main reason to proceed:
- Main reason to pause:

### 2. Investment Thesis

### 3. Market and Flight-to-Quality Position

### 4. Rent Roll, Stacking Plan, and Lease Risk

### 5. Tenant Credit and Exposure

### 6. TI / LC and Capital Plan

### 7. Financing Fit

### 8. Returns and Sensitivities
| Case | IRR | Equity Multiple | DSCR Low Point | Key Assumption |
|---|---:|---:|---:|---|

### 9. Key Risks and Mitigants
| Risk | Severity | Impact | Mitigant / Condition |
|---|---|---|---|

### 10. Open Diligence Items

### 11. Final Recommendation

### Confidence Level
HIGH | MEDIUM | LOW

Quality Checks

  • Recommendation matches the evidence from upstream analyses
  • In-place NOI and stabilized NOI are both shown
  • Leasing costs are visible below NOI
  • Major tenant and rollover risks are not summarized away
  • Financing constraints are reflected in the recommendation
  • Every quantitative claim maps to a source analysis
  • Conditional approvals include explicit conditions

Red Flags & Dealbreakers

  • Memo recommends GO despite unresolved major tenant expiration, debt shortfall, or unfunded TI/LC
  • Stabilized returns are presented without lease-up cash-flow bridge
  • Market thesis ignores sublease competition
  • Conversion downside is used without feasibility support
  • Risks are described but no mitigants or conditions are attached

When Data is Missing

  • If an upstream analysis is missing, include it as an open diligence item rather than omitting the topic
  • If underwriting is incomplete, do not provide a GO recommendation
  • If lease documents are incomplete, mark lease-risk confidence as LOW
  • If financing terms are missing, present unlevered returns and a debt-sizing sensitivity

Confidence Scoring

Level Criteria
HIGH All upstream analyses complete, current market data available, lease documents reviewed, financing terms tested
MEDIUM Core underwriting complete but one or two diligence workstreams remain open
LOW Material lease, market, tenant, financing, or capital-cost data missing

Related Knowledge Bases

Research Basis