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  1. #1

    Default Tenant requesting DSA report for their insurance company

    Late last year our commercial tenant looked at purchasing my building and commissioned a DSA report. This report stated that the building had a NBS rating well below 34%. Since then we have commissioned our own DSA report which states that the building is well above 34%, but not above the magic 67%.
    Our tenant is now requesting a copy of our DSA report for "their insurance company"
    We have already supplied the tenant with a letter from the engineering firm outlining the findings of the report and 2 pages of the report that highlights the critical information.
    I'm not sure that their insurance company is requesting that information and do we have to supply it re: - it is a report that we commissioned.
    PS: the tenant has never given us access to their report.

  2. #2

    Default

    where in the country are you? EQ risk?

    Did you have a S and P on the tenants intention to buy?

    If the building was EQ prone you might have to show but otherwise I say no?

  3. #3
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    7,262

    Default

    Quote Originally Posted by jcmk View Post
    Late last year our commercial tenant looked at purchasing my building and commissioned a DSA report. This report stated that the building had a NBS rating well below 34%. Since then we have commissioned our own DSA report which states that the building is well above 34%, but not above the magic 67%.
    Our tenant is now requesting a copy of our DSA report for "their insurance company"
    We have already supplied the tenant with a letter from the engineering firm outlining the findings of the report and 2 pages of the report that highlights the critical information.
    I'm not sure that their insurance company is requesting that information and do we have to supply it re: - it is a report that we commissioned.
    PS: the tenant has never given us access to their report.
    2 points:

    1) If the tenant won't let you see their report, then ignore anything they say about it, they could well be full of it.

    2) If your report is favourable, then I see no reason why you wouldn't show it to the tenant. If you're wanting to sell, this is evidence of a decent value for the building i.e. it's in your favour. So they can't negotiate the price down based on seismic issues.

  4. #4

    Default

    Thanks for both responses.
    The S & P process fell through. The tenant began leasing the building 2.5 years ago and was happy with an IEP report that stated a 52%NBS, and during that period never requested a copy of the IEP for their insurance company.
    I think your responses confirm - that the tenant is bluffing - why would their insurance company request the DSA? They don't insure the building.


 

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