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Lease Expense Review
Confidential - Government
CLIENT
Confidential - Government
SPACE
N/A
INDUSTRY
Government
CRESA TEAM
Maria Nenciu
CRESA OFFICE
Toronto, ON
SERVICES PROVIDED
Lease Expense Review
CLIENT OBJECTIVES & RESULTS
CLIENT OBJECTIVES
- - This Ontario government client initially assigned the Cresa Toronto team with 17 of 29 files to review.
- Given the team’s immediate successes, six months into the assignment Cresa Toronto was asked to review their entire portfolio of files.
RESULTS
- - Following a thorough review of both current years and past years’ reconciliations, the team identified errors in areas such as:
o Recovery of excluded items (i.e. construction fees, interest on undepreciated capital costs, etc.)
o Historic tax appeal credits not refunded at the time
o Excessive office tenants' specific costs allocation
o Management fee higher than allowed in the lease
o Inaccurate proportionate share calculation
o Inaccurate rent payment credit
o Incorrect length of depreciation
o Capital costs recovered in the then current year versus being amortized over its economic useful life
o Inaccurate reconciliation altogether
o Rent charged beyond the agreed upon term
- Overall, Cresa Toronto’s client recovered $250,000 in overcharges for the previous 4 years.
© 2024 Cresa Toronto Inc., Brokerage
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