What Are Gross-Ups and Are They Fair?

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 […]
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A $700,000 Submeter Mistake

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 […]
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