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The Blog

Lease Audit

Posted on December 3, 2012

Lease Audit is a broad topic that means different things to different people. In most cases Lease Audit is associated with auditing Operating Expenses (“OE”). OE reconcilliations are an annual ritual in which the Tenant scrutinizes the Landlord’s numbers for variable and reimbursable expenses. This area of Lease Audit is covered in other articles. A different...

Audit Operating Expenses

Posted on November 7, 2012

Auditing Operating Expenses (O.E.) is like going to the Dentist without Novocaine. That’s because the audit process is typically arduous, confusing, convoluted and time consuming. On the other hand, done successfully, an audit can uncover mistakes & errors, over-billing, duplicate invoicing, non-allowable charges, etc., etc. Added up, these erroneous charges can amount to tens...

Market Deals – How you can do better!

Posted on September 18, 2012

In the world of commercial real estate, references are often made to market deals. Cocktail talk and casual conversation are when tenants like to tell-all about recent deals they’ve done. Generally, few specifics are volunteered. Somewhere in the conversation though it comes out -”I got a market deal.” So what are we to make of...

What effect will Capital Lease Accounting have on Tenants?

Posted on August 2, 2012

As if Tenants didn’t have enough things to worry about, soon they will have a new accounting regulation with which to comply. This is known as Capital Lease Accounting. This regulation will not affect leases per se, but it will mean that Tenants will need to recognize the rent obligation of their leases as liabilities...

What’s better – TI Allowance or Turnkey Buildout?

Posted on April 5, 2012

Most commercial real estate lease transactions include some construction modification to the space (“Premises”). The improvements can be as simple as paint and carpet, or more complex with demolition and new construction. Negotiating the Tenant Improvements (“TI’s”) often is the most crucial part of the transaction. Construction is costly, and who pays and how the...