CLICK HERE to subscribe to our newsletter, MBG on CRE!

Expense Audit Uncovers Savings of $434,200.

Expense Audit Uncovers Savings of $434,200

Lease Auditing
Client: Fortune 100 insurance company

Audit Discovery:
The lease provided for a cap on increases in controllable expenses which were clearly defined in the lease. The landlord applied the cap only on certain expenses and chose to pass through all other expenses to our client. The landlord also passed through hazardous material removal expenses that were prohibited in the lease, as well as mold mitigation charges that were covered by insurance.

MBG Consulting discovered that the landlord treated certain expenses as non-controllable, arguing that union charges cannot be controlled. The lease, however, specifically excluded variations due to union labor agreements. MBG Consulting examined the insurance policies in place and discovered that mold mitigation expenses were covered by insurance. Calculations were revised and our client was awarded a credit of $434,200.

google-site-verification: google104c975a11d446c2.html