December 12, 2018

What Are Gross-Ups and Are They Fair?

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By Anna Woodworth, Senior Auditor Many commercial leases include provisions allowing landlords to “gross-up” operating expenses. This means that if the building is not fully occupied, the landlord can bill the expenses to the tenants as if the building is fully occupied. The landlord benefits from a gross-up provision because it shifts some of the costs associated with vacancies to the tenant. The most common gross-up provisions allow for variable expenses (not all expenses) to be
Audit Language, Auditing
By Anna Woodworth, Senior Auditor Most real estate gurus can tell you about the important aspects of a commercial real estate lease: rent, term, options to renew, etc. But while location, location, location may be the biggest factor in signing on the dotted line, some lesser known parts of the lease can bring big headaches to tenants that haven’t thought through the impacts a “hidden clause” can bring. When a tenant doesn’t have an attorney
Auditing
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November 14, 2018

A $700,000 Submeter Mistake

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What is your submeter actually measuring? You’ve moved into an upscale office park with all the perks and amenities that a successful business should enjoy. As invoices start to come in, you realize that your first electricity bill from the landlord is significantly higher than what you expected. What’s the reason for the discrepancy? Sometimes the cause is a simple mistake made by the utility provider. That is, it could be that the utility provider
Auditing, Utility Articles
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November 6, 2018

Audit Language: Audit Window

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Don’t miss out on recovering your money because of a short timeline You already know that the operating expense provision is one of the most important sections of a commercial real estate lease when it comes to controlling occupancy costs. While you should be diligent about itemizing the types of costs that you can be charged, you should also pay attention to a crucial area in your lease regarding the timing of your right to
Auditing
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“You can do two things at once, but you can’t focus effectively on two things at once.” – Gary Keller, founder of Keller Williams The Global Service Providers support a seemingly endless list of services, but are they the best choice in performing lease audits on your corporate real estate portfolio? These global firms offer lease audits for their brokerage clients, but this service is not their primary focus. Lease audits are merely another menu item
Auditing
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