Looking at a rent roll for an industrial or mixed-use property on Long Island in Cumberland County, Maine? If you are like most private investors, you want a fast, reliable way to translate rows and columns into real cash flow and risk. In this guide, you will learn how to read each column, run the key math, spot NOI red flags, and factor in island-specific issues like septic, ferry logistics, utilities, and flood exposure. By the end, you will have a simple checklist and a clear path to next steps. Let’s dive in.
Rent roll basics in five minutes
A rent roll is a snapshot of tenants and lease terms that helps you estimate current and near-term income, recoveries, and risk to NOI. It shows who occupies the space, what they pay, and how that will change over time. For a plain-English definition, check the overview from Investopedia on rent rolls.
Use the rent roll to do four things quickly:
- Confirm scheduled income and $ per square foot, including any concessions.
- Map rollover risk by lease expiration date and concentration by year.
- Verify expense structure and recovery mechanics, including CAM, taxes, and insurance.
- Identify items that change future cash flow, such as escalations, caps, and options.
Key columns to analyze
Tenant and unit identification
This is the unit or suite plus the legal tenant name. Look for affiliated entities, subleases, or multiple entries for the same occupant. Confirm the legal entity matches the signed lease and any amendments.
Square footage and basis
You need to know whether the rent uses rentable or usable square feet. Recalculate $ per square foot using the same basis to avoid apples-to-oranges errors. Annual $ per SF equals monthly rent times 12, divided by rentable SF.
Lease start and expiration
These dates show stability and rollover timing. Calculate months remaining and flag leases with less than 12 to 18 months left. Group expirations by year to see any heavy concentrations that could impact occupancy and NOI.
Base rent and escalations
Base rent is the contract rent before recoveries and percentage rent. Note the escalation type and timing, such as fixed dollar, fixed percent, or index based on CPI with caps or floors. Confirm whether escalations apply to base rent only or to gross rent because that affects pass-throughs.
Concessions and effective rent
Free rent, abatements, and amortized TI allowances reduce near-term cash flow. Always calculate effective rent over the lease term to understand true income. This prevents overstating collectible income when a schedule only shows base numbers.
Expense recovery and lease type
Confirm the lease type, such as NNN, Modified Gross, Gross with a base year, or Full Service Gross. Identify which expenses are recoverable, how shares are allocated, and any caps, stops, or exclusions. Recovery structure drives risk and volatility for the landlord and therefore NOI.
CAM details and reconciliations
Determine how CAM is estimated and reconciled and whether tenants have audit rights. Request the last two to three years of CAM reconciliations and note any large true-ups. A pattern of under-recovery signals future leakage.
Security deposit or letter of credit
Record the amount, type, and treatment at sale. Security is a backstop if a tenant defaults, which is especially important where enforcement or logistics may take longer on an island. Confirm the account where deposits are held and how transfers will occur.
Tenant use and permitted use
Match the tenant’s use to zoning and any shoreland rules. Industrial users with chemicals or fuel storage can trigger additional permits and environmental responsibilities. Clarify any assignment or sublease restrictions that could affect re-tenanting.
Percentage rent or revenue splits
Mixed-use or retail components may include base rent plus a percentage of sales. Check reporting frequency, audit rights, and historical materiality. If percentage rent has not meaningfully contributed, do not overestimate it in your model.
Parking, dock, and access rights
Note reserved spaces, loading and dock access, and any exclusive rights that restrict future leasing. On an island, dock or ferry-adjacent access can be material to operations and leasing flexibility. Verify that agreements align with the lease.
Guarantors and credit profile
Identify corporate, parent, or personal guaranties. Differentiate between public credits and small private tenants and request financials for larger exposures. Stronger credit support can offset rollover or industry risk.
Options and termination rights
Record renewal options with their pricing formulas, early termination rights, and expansion options. These terms can change your long-term cash flow and leasing plan. Make sure option deadlines and notice mechanics are clear.
Admin totals and NOI math
Use these totals to bridge to property-level income. Scheduled Gross Income includes base rent and recoveries. Effective Gross Income equals Scheduled Gross minus vacancy and collection loss plus other income, and NOI equals Effective Gross minus operating expenses.
Quick math to validate income
Run these simple checks directly from the rent roll:
- $ per SF per year equals monthly rent times 12 divided by rentable SF.
- Effective monthly rent with concessions equals total rent receipts over the concession period divided by months paid.
- Loss to lease equals market rent minus contract rent per unit or per SF.
- Vacancy and credit loss allowance equals scheduled gross times your assumed vacancy percent.
- NOI equals Scheduled Gross Income minus vacancy and collections minus owner-paid operating expenses plus tenant recoveries.
Worked example:
- Tenant A occupies 2,000 SF at 2,000 dollars per month, NNN, with the first month free on a 24-month term.
- Annual base rent equals 2,000 times 12 equals 24,000 dollars. Base $ per SF per year equals 24,000 divided by 2,000 equals 12 dollars.
- With one free month over 24 months, total collected equals 46,000 dollars. Effective annual rent equals 23,000 dollars and effective $ per SF per year equals 23,000 divided by 2,000 equals 11.50 dollars.
Red flags that move NOI
Operational and lease issues
- Heavy rollover within one year or multiple month-to-month tenants.
- Large concessions, unamortized TI, or minimal escalations that depress near-term income.
- Caps or exclusions in recovery clauses that push expenses back to the owner.
- CAM reconciliations showing consistent under-recovery.
- Ambiguity on major capital items like roof, structural, and parking lot responsibility.
- Holdover occupancy, sublease disputes, or pending litigation or bankruptcy.
Physical, environmental, and access issues
- Tenants with hazardous materials or fuel that may create contamination risk. Request a Phase I report if appropriate.
- Septic or wastewater constraints that affect operations and capital planning.
- Flood and coastal exposure that drive insurance costs and deductibles.
- Utility resiliency and outage risk on an island.
- Transport logistics that rely on ferry schedules or limited freight windows.
Financial and documentation issues
- Property tax appeals or assessment uncertainty.
- Blurred responsibility for business personal property taxes or utilities.
- Missing or incomplete lease files or unsigned amendments. Request estoppels to verify terms as represented.
Long Island, Maine adjustments
When you read a rent roll for an island asset in Cumberland County, adjust your lens for local realities:
- Zoning and shoreland rules. Confirm permitted uses and setbacks with the Town of Cumberland planning and land use team. Start with the Town of Cumberland municipal site.
- Environmental permits. Some industrial uses require Maine DEP approvals for discharges or hazardous materials. Review prior permits or notices via the Maine Department of Environmental Protection.
- Utilities and resiliency. Central Maine Power serves much of Maine and island service can have unique arrangements. Ask for utility bills, demand charges, and outage history, and visit Central Maine Power resources.
- Water and sewer. Many island assets rely on wells and septic. Request inspections, pumping records, and capacity details because upgrades can be costly.
- Access and logistics. Freight timing and cost affect tenant operations and rent tolerance. Document any dock or parking rights tied to the leases.
- Flood risk and insurance. Pull the property’s flood zone via the FEMA Flood Map Service Center and verify premiums and deductibles with the current carrier.
- Taxes and assessments. Island comparables are limited, so confirm the assessment history and any appeals with town or county assessor contacts at the Town of Cumberland website.
Due diligence checklist
Use this checklist to stress test what you see on the rent roll:
- Leases and amendments: full copies, side letters, and certificates of occupancy or use permits.
- Estoppels: recent confirmations of key lease terms from tenants.
- Operating statements: two to three years plus year-to-date and rent receivable aging.
- CAM: last two to three years of reconciliations and what is included or excluded.
- Security: deposit ledger and where funds are held, plus any letters of credit.
- Utilities: 12 months of bills for each meter and the whole property.
- Insurance: current policies and five-year claims history, with wind and flood details.
- Taxes: property tax bills and assessment history, including any pending appeals.
- Environmental: Phase I and any Phase II or remediation documentation.
- Systems and site: maintenance records for roof, HVAC, and septic.
- Access rights: parking, dock, and any separate access agreements.
- Options and rights: renewal, termination, expansion, and assignment or sublease provisions.
- Financial modeling inputs: loss to lease, vacancy and collection loss, nonrecoverable expenses.
What to request next
Ask the seller for the rent roll in its native format along with signed leases, amendments, CAM reconciliations, operating statements, and utility, tax, and insurance back-up. If tenant recoveries drive NOI, reconcile the recoveries to actuals and review any caps or exclusions. If environmental, septic, or flood risk is present, schedule the appropriate third-party reviews before final underwriting.
When you want a second set of investor-grade eyes, you can submit your rent roll, three months of AR aging, and the most recent CAM reconciliation for a focused review. If you are preparing to buy or sell, our vertically integrated team can help you translate lease data into a clean NOI story and a practical action plan. To get started, reach out to Tide Realty Group. Rise With Us.
FAQs
What is a rent roll and why does it matter?
- A rent roll is a schedule of tenants and lease terms that helps you estimate current and near-term income and risk to NOI, as described by Investopedia’s rent roll overview.
How do I convert rent to $ per SF per year?
- Multiply monthly rent by 12, then divide by rentable square feet, and use the same SF basis shown on the rent roll.
How should I treat free rent and TI concessions?
- Calculate effective rent by spreading the value of concessions over the full lease term so you do not overstate collectible income.
What island-specific risks should I check first in Maine?
- Verify flood zone and premiums, septic capacity and records, ferry or dock logistics, and utility resiliency, then confirm zoning and permits with the Town of Cumberland and the Maine DEP.
Where do I look up the flood zone for a property?
- Search the property address at the FEMA Flood Map Service Center and confirm with your insurance broker.
Who typically pays CAM, taxes, and insurance?
- It depends on lease type; NNN tenants usually reimburse their pro rata share while Gross or Base Year structures may leave more expense exposure with the landlord.
