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Lease audit: Optimising occupancy expense savings
Corporate Real Estate Journal,
13
(4),
302-313
(2024)
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.
Keywords: co-tenancy; exclusive; character of shopping centre; use provision; common area maintenance; real estate taxes; insurance; utilities
The full article is available to subscribers to the journal.
Author's Biography
Debbie Ravel is the Founder and Principal of DR Lease Consulting, LLC, a New York-based boutique lease audit company specialising in lease compliance for retail, office and industrial occupiers. Bringing over three decades of expertise in real estate accounting, auditing and lease administration, Debbie possesses a wealth of experience in developing lease compliance processes for various public companies. Her global oversight, negotiation and settlement of lease audits, spanning thousands of leases, have assisted her employers and clients in recovering millions in overcharges, showcasing her proficiency in this field. Before establishing DR Lease Consulting in 2019, Debbie enjoyed a successful tenure at Gap Inc., where she led a highly effective team and consistently expanded the lease audit compliance programme, resulting in substantial reductions in occupancy costs. Debbie has been an active contributor to the National Real Estate Tenants Association (NRTA), a notfor- profit, premier educational association that serves commercial real estate tenants. Debbie has facilitated numerous industry peer presentations for the NRTA, International Council of Shopping Centers (ICSC) and the Restaurant Finance Development Conference. Currently serving on the Curriculum Committee and holding the position of President for the NRTA, Debbie continues to make significant contributions to the real estate industry.
