Posts by Portfolio Lease Administration & Advisory Team

How A Lease Audit Can Boost Your Bottom Line

Portfolio Lease Administration & Advisory Team on May 08, 2023

Each year, commercial tenants collectively spend millions of dollars above and beyond their base rent in operating expenses. Unlike the rental rate that is negotiated and spelled out in the lease document, these operating expenses (OpEx) are subject to each property owner’s operating and accounting procedures. These charges are presented to tenants twice a year—in the beginning of the year as an operating expense budget, and at the end of the year as an operating expense reconciliation statement. These expenses are subject to interpretation, and unfortunately, errors can be made, unbeknownst to tenants who end up needlessly overpaying.