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Sample Issues

KBA has dealt with almost every kind of lease misinterpretation and billing error imaginable.

The issues KBA identifies and reviews are varied and extend into every financial term of a commercial lease.  KBA has the breadth, knowledge and experience to manage a broad spectrum of issues.

Operating Expenses

  • Pro rata share miscalculations
  • Base year inadequacy
  • Expense stop inadequacy
  • Charging of excluded costs
  • Improper charging of capital expenditures
  • Incorrect calculation of savings for allowable cost-saving capital items
  • Misallocation of costs among buildings
  • Failure to bid service agreements
  • Charging above-market fees for non-arms-length services
  • Excessive management fees
  • Inclusion of profits for building materials
  • Improper allocations of expense pools
  • Marketing fund charges
  • Excessive administrative fees
  • Improper calculation of association dues
  • Improper inclusion of unrelated costs

Base Rent

  • Per square foot rent miscalculations
  • CPI miscalculations
  • Rent commencement errors

Space Measurement

  • Improper inclusion of vertical penetrations
  • Use of incorrect BOMA standard for the building’s classification
  • Improper inclusion of exterior building areas
  • Measurement to incorrect interior surface
  • Mismeasurement of rentable and common areas

Real Estate Taxes

  • Failure to apply tax refunds
  • Failure to pursue tax certiorari consistently from year to year
  • Improper inclusion of personal property taxes
  • Improper inclusion of income taxes
  • Failure to properly account for costs of tax professionals

Electric and Other Utility Charges

  • Misapplication of rates
  • Use of incorrect rate schedules
  • Addition of surcharges to utility costs
  • Wiring of meters to unrelated spaces
  • Misreading of meters
  • Miscalculation of multipliers
  • Incorrect assumptions as to usage
  • Incorrect counting of equipment for surveys
  • Failure to properly notify tenant of survey results
  • Excessive charges for chilled water and condenser water.
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