Lease audit: Optimising occupancy expense savings

Abstract

This paper provides strategies and techniques for occupiers to capitalise on lease language to minimise occupancy expenses. Identifying ways to reduce occupancy related expenses may significantly benefit organisations’ bottom line. Establishing a ‘right fit’ occupancy cost lease compliance programme is a prudent component of managing a real estate portfolio. The paper discusses techniques in reviewing and verifying that some of the more frequent occupancy expenses have been billed in accordance with the lease. It includes a detailed review of the many facets involved in the calculation of occupancy expenses payable by an occupier, and the ways to validate the accuracy of the expense billing. The paper includes the review of additional lease provisions which if not complied with may result in reduced rent and additional beneficial remedies available for the occupier.