If you have ever been involved with an on-site lease audit of a landlord’s books and records, you would know that landlords hate them. With the widespread use of digitized record-keeping, many landlords are opting to send such records to their tenants electronically. This article discusses the benefits and limitations of sharing digital copies of Operating Expense/CAM records, and suggests sample lease language for that purpose.
Tags: blog, CAM, Common Area Maintenance, CoreNet, Gross Up, Grossing Up, Lease Accounting, Lease Audit, lease auditing, Lease Management Software, Lou Ferro, Marc Betesh, Operating Expenses, real estate operating expenses, Real Estate Tax, Retail, visual lease
Why would a tenant’s operating expense bill be 10 times higher than expected just 2 years after occupying new space? Many real estate professionals will tell you that 80-90% of all corporate leases suffer from deficiencies; the question is–can you identify and remedy them? We’d like to arm you with some information to help navigate these waters and avoid some of the more dangerous issues. This LeaseTip addresses the dilemma a tenant that moves into an empty building can face.
Tags: building occupancy, CAM, Commercial Real Estate Investment Magazine, Common Area Maintenance, empty building, Gross Up, Grossing Up, Lease Accounting, Lease Audit, Lou Ferro, Marc Betesh, Operating Expenses, Pass-throughs, Strategies, vacancy, visual lease
Gross-ups are adjustments to building expenses that are made when such expenses are below normal levels because of building vacancies and other factors.
Tags: Gross Up, Grossing Up, Operating Expenses
The commercial real estate industry is abuzz with the proposed changes to lease accounting under generally accepted accounting principles (GAAP). Why the Changes? The FASB and IASB are trying to eliminate a “form over substance” distinction in GAAP accounting that has led to confusion and potential misuse in financial statements. The Proposal will require significant adjustments to the treatment of Gross and Modified Gross leases, which constitute the majority of commercial office leases in the U.S.
Tags: FASB, Gross Up, Lease Accounting, Lease Audit
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Size Matters!Why All Lease Abstracts are Wrong!Bringing the Field to the Desk: Lease Audits in a Digital AgeFASB / IASB Lease Accounting Changes – Don’t Worry, Be Happy!
How can the timing of my lease audit affect the results?Do I have the right to audit my lease?What can be wrong with my bills?How will auditing my lease affect my relationship with my landlord?
