The Landlord As the Detective

PHILADELPHIA-Just operating your property and running things as if business is usual will not cut it in today’s environment, when several tenants are going out of business or looking to downsize. Nowadays, due diligence is more important than ever, and landlords are advised to do a lot of research to find out what’s going on with current and prospective tenants.

Public documents, like lawsuits or tax liens, can give you an idea of a tenant’s help, as can trade publications covering whatever industry they’re involved in, said speakers here at the Building Owners and Managers Association’s annual Office Building Show at a session entitled “Recognizing and Managing Tenant Financial Distress.”

“It’s out there,” said Tara Gorman, an associate at Washington DC-based law firm Greenberg Traurig. “You just have to look.”