To screen commercial real estate deals consistently, separate mandate fit from investment quality. The first screen should answer whether the opportunity belongs in the firm’s funnel, what the available evidence says, and which unknowns must be resolved before deeper underwriting is worth the time.
Start with non-negotiable mandate fit
Check asset type, geography, size, vintage, strategy, deal structure, check size, and other hard limits. Make the rules explicit enough that two analysts reach the same result from the same evidence.
Do not confuse missing information with a violation. A deal that lacks a price may need a request or range analysis; it has not automatically passed the basis threshold.
Assess the package and source quality
Confirm which documents exist, their dates, and whether key facts reconcile. An OM-only opportunity can still receive a preliminary screen, but the result should carry lower confidence than a package with a current rent roll, T12, and supporting detail.
- Property and transaction facts
- Current occupancy and lease schedule
- Historical revenue and expenses
- Seller’s business plan and projections
- Material missing files and contradictions
Use a bounded first-pass economic view
Estimate the deal only to the precision supported by the package. Look at price per unit or square foot, going-in yield, rough debt constraints, major capital needs, and the gap between current operations and the seller’s pro forma.
The screen should identify what must be true for the opportunity to work. It should not bury a weak historical base under a complete-looking long-term model built from unsupported assumptions.
End with a reason and a next action
Record whether the deal advances, stops, or waits for information—and why. If it advances, name the questions the full underwrite must answer. If it stops, preserve the rule and evidence so the team can learn from the decision later.
A consistent record improves future screening because the firm can compare written pass and pursuit reasons against later outcomes rather than relying on institutional memory alone.
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