Hughes Marino always looks to help our clients save time and money, while limiting risk, and the Lease Audit division within our Portfolio Lease Administration and Advisory team is no exception.
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.
Our Lease Audit division plays a critical role in reviewing these expenses to ensure our clients are only paying what they agreed when their lease was signed. With a commitment to our clients that goes well beyond the lease signing, our team helps clients navigate through these charges and achieve savings while also maintaining good landlord relations. So, the next time you receive operating expense statements from your landlord, send them to us. We’ll be happy to help you navigate them!