Showcasing these spaces help landlords market and promote the building. These finished out suites often show unique features to potential prospects. In today’s market, landlords are exerting significant effort to lease their emptying spaces.
Tenants should not be responsible for covering expenses related to marketing and promotion. These expenses do not fall under operating the building. However, it has come to our attention that many tenants are inappropriately bearing the costs of certain expenses associated with these finished-out show rooms. These expenses are often concealed within other line items in operating expenses.
Various expenses, such as those related to artwork, furniture, usage of overtime elevators, utilities, and other costs, are frequently passed on to tenants. Leases often explicitly exclude these types of expenses, yet we continue to uncover instances of overcharges.
It is essential for tenants to carefully review their lease agreements and seek professional advice to ensure they are not burdened with unjustified expenses related to spec spaces or model floors. Being vigilant about these hidden costs can save tenants from unexpected financial obligations and potential disputes with the landlord.
Give us a call today to look at your leasehold expenses. CTS has over 35 years of Lease Audit Experience and is happy to share how we have saved our clients billions of dollars in overcharges. EHarris@ctsaudits.com / www.ctsaudits.com