Real Results

COMPREHENSIVE LEASE AUDIT

A Fortune 100 Financial Institution leased 700,000 square feet in a 1,800,000 square foot commercial campus. Pursuant to a new local ordinance, the landlord initiated a multi-year capital project as well as additional projects not required by law.

Our extensive audit identified that certain capital expenditures were expensed in the years audited rather than amortized over multiple years while other projects, which should have been excluded completely from operating expenses under the lease, were billed to our client. These findings resulted in an immediate recovery of over $1,000,000 for our client and an additional recovery of over $2,000,000 in subsequent years.

UTILITY SAVING INITIATIVE

Our client occupied 175,000 square feet of mixed-use commercial space. Utility bills provided were reviewed and analyzed by our licensed engineers and accountants, and through our unique engineering-based approach, it was determined that the meters used by the utility service provider were not accurately measuring our client’s actual consumption.

New, properly functioning, meters were installed. As a result, subsequent billings from the utility provider were significantly less than before, which lead to an ongoing savings of $250,000 per year. Through successful negotiations with the utility service provider, we were also able to obtain a historical recovery of nearly $500,000.

LOCAL ORDINANCE IMPLEMENTATION

A global leader in the telecommunications industry owned and occupied a Midwestern commercial office building that consisted of over 200,000 square feet. Due to our knowledge and experience with similarly used office space, we discovered that the method used by the utility service provider for calculating consumption fees was incorrect.

At the time, the city’s billing ordinance allowed the utility service provider to use the erroneous billing method. Our licensed engineers and legal team worked successfully with the city and utility service provider to implement an amendment to the billing ordinance. Our client is saving over $30,000 annually at this location as a result.

OVERTIME HVAC

A Fortune 100 client leased space in a mixed-use building totaling nearly 500,000 square feet. Our client received a bill from the landlord for overtime HVAC in excess of $750,000, which included retroactive charges for proceeding years. This bill was prepared based on the consultation of a third-party engineering firm.

Our licensed engineers performed a detailed inspection of all related equipment and methods of operation, and calculated our client’s true actual cost, which was much lower than the amount calculated by the third-party engineering firm. When our findings were presented to the landlord, the $750,000 bill was withdrawn. In addition, the equipment-specific rates for overtime HVAC that the Chelepis team calculated were used to determine subsequent invoice amounts. As a result, our client realized an ongoing annual savings of over $250,000.