Cresa College: Operating Expense Statements
Cresa Portland is hosting an hour long class on understanding landlord pass thrus and operating expense costs.
5 things to keep in mind:
- Landlords are human (hard to admit) and make mistakes. These could be mathematical due to pro-rations, the inclusion of 13 rather than 12 months of expenses, or the addition of non-allowable expenses. Often changes in ownership or building occupancy will create issues.
- Operating Expense pass-thrus can represent a significant part of the rent paid to landlords. They are in the business of maximizing this revenue stream. Standard lease language will give them a great deal of leeway.
- Few landlords will take the time to look at individual leases and adjust the pass-thrus for language specifically negotiated in your lease. If favorable language has been negotiated in the lease it is wise to make sure the landlord has recognized that.
- Comparing the lease language to the actual bill can get very complex and involve lease language interpretation. The Landlord’s property manager or book keeper will not necessarily interpret the language with the same intent as it was negotiated. Continue Reading »
Tags: commercial real estate, corporate real estate, cost savings, Cresa College, Cresa Portland, landlord, lease, lease administration, Operating Expense, OPEX, Patrice Cook, Tenant Representation, Tenant Rights, Transaction Management, Understanding Operating Expenses, Vice President