How To Protect Your Company Against Overpaying The Operating & Tax Expense Invoice You Will Receive This Quarter
February 11, 2016 | Posted In Insider's View, Newsletters
You will soon receive an invoice for operating and tax expense pass throughs which will increase your occupancy cost. Do you know the eight things to look for to assure you are not among the tenants overpaying?
To protect your company, you will need to scrutinize the following, or if you are a client or prospective client of ours, send your invoice to me and we will compare it to your lease provisions to identify any excess charges or looming increase, at no cost:
1. The base year for accuracy and proper credit for any update;
2. The percentage of the building leased for accuracy and the applicable reduction for any decrease to the square footage;
3. The size of the building to assure it isn’t “growing” and that it only includes the square footage used for office space;
4. The cap on expenses negotiated in the lease has been applied, if any;
5. The proper credit has been provided for estimated payments made;
6. The operating expenses are in line with the competitive market;
7. The real estate taxes are in line with the competitive market. If they are too low, contact me for advice on how to protect your company against a looming increase;
8. The impact of your building being sold. This can trigger a reassessment resulting in increased real estate taxes. Should this occur, contact me for advice on how to protect your company against costly real estate tax pass throughs.
About the Author
Carrie S. Holstead is the Founder, President and CEO of the longest established tenant representation firm in Pittsburgh, Pennsylvania, as well as being Chairman Emeritus of ITRA Global with experience in nearly 300 markets around the world. She was honored as a Woman of Influence by Real Estate Forum Magazine in 2015, and is the acclaimed author of the monthly Insider’s View To Corporate Real Estate. If your company needs to expand, contract, merge, relocate, or renew an office lease(s), locally or globally, contact Carrie Holstead at +1 (412) 255-3737. To receive the Insider’s View To Corporate Real Estate electronically, sign up at www.carrieholstead.com.
All information provided herein is from sources deemed reliable but no warranty, expressed or implied, is made.
