With a substantial number of office leases expiring by 2026, Landlords increasingly seek to retain ALL money, which could include erroneous billings. Brokers may recommend to their clients, avoid Lease Audit, instead focusing on transactions. Despite other advice you may be getting, Audit Clause limitations are not so limiting! Our 35 years of experience, include many successful programs, recovering large overpayments for tenants with restrictive or non-existent lease clauses.
We see an increase in creative ways of hiding behind ‘paper-tiger’ tropes around audit language; which may make it easier for Landlords to pass on unsubstantiated charges. Lease Audit is now a standard best practice in North America which supports a tenant’s right to review documents. Leases may specifically state audits are prohibited or include no language at all [be ‘silent’]. In such instances, CTS typically finds recoveries for clients – obvious errors, that follow lease language around OpEx (Operating Expense), CAM (Common Area Maintenance), Service Charges, Real Estate Taxes, Utility, HVAC, unusual pandemic expenses, etc., are generally excluded from these audit constraints.
Lease Audit is now a prevailing convention and compliance function, as such, limiting a tenant’s review of documents may disrupt the spirit of your agreement. Can a tenant truly expose hidden recoveries if a landlord refuses to supply essential and back-up documentation? Our tried-and-true methods say yes.
Engage CTS to discuss best practice value creation. Ask us how we may help increase your cash flow [and decrease overhead]. We’re conflict-free; only working for tenants. Being your advocate for safeguarding your funds is our goal. Click here to reach out to CTS.