Enhancing Risk Management Strategies by Performing Lease Reviews
In today’s complex commercial real estate landscape, risk management isn’t just about insurance policies and emergency protocols – it’s also about uncovering hidden financial exposures buried within your lease agreements. One powerful, often underutilized tool in this process is a deep dive Lease Analysis by a third-party firm.
Lease Reviews serve as a safety net, catching discrepancies early and helping mitigate financial and legal risks.
Ways Lease Reviews Enhance Risk Management:
Cost Control
Lease Reviews ensure all charges are in line with the lease agreement – we find overcharges in Operating Expenses, CAM, Real Estate Taxes, HVAC, Insurance, Cleaning, Overtime Energy Usage, electric, wiring, Sundry charges, co-tenancy situations, indexes, misapplied Caps and everything in between. Focusing on line-items, including Administration, Management fees, Insurance, gross-up miscalculations, base year inaccuracies, improper utility calculations and other post-covid billing anomalies.
Contract Compliance
Confirm Landlords and/or Management Companies are fulfilling their contractual obligations, reducing exposure to penalties or litigation.
Data Accuracy for Strategic Decisions
Real Estate decisions – renew, relocate, renegotiate – are only as good as the data behind them. Reviews ensure that data is trustworthy.
Make Lease Reviews Part of Your Annual Risk Strategy
Don’t wait for an issue to arise. Incorporate lease reviews as a recurring risk management practice. Consider external audit specialists who can provide objective insights and expertise in lease interpretation and market benchmarking.
It’s in our DNA – CTS is proud of our 30+ years of experience and over one billion square feet audited. CTS has helped over half of the Fortune 100 (and smaller companies) save billions of dollars. Get started now to start saving before year-end. Reach out for a complimentary consultation and a guide to our services, pricing, timelines and what makes our process uniquely effective from others, leading to our clients’ success. Sara Stanley/SStanley@CTSAudits.com/310-526-8389