We partner with tenants exclusively to uncover their portfolio’s hidden costs to optimize value.
Our lease expense review services help businesses find real, long-term savings by ensuring they pay only for what is written in their contracts. We use our experience to review your documents and recover any costs that were charged by error. Every review is tailored to your company's operating practices and financial management. By looking closely at the details, we identify errors in even the most complex agreements to ensure you get the best value for your space.
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How does your 2025 additional rent compare to the prior years and the industry average increase?
Success Story
Uncovering Billing Errors and Securing a Credit for a Growing Technology Firm
A national IT firm discovered that capital expenditures had been incorrectly charged as operating expenses in its lease reconciliation. After Cresa Toronto raised the issue, the client received a $74,000 credit.
Success Story
Identifying Significant Savings Across a Multi-Location Retail Portfolio
Managing more than 160 leased locations, a national retail chain engaged Cresa Toronto to review operating expenses across its portfolio, uncovering billing discrepancies that resulted in $260,000 in recovered savings within one year.
Success Story
Ensuring Compliance and Cost Savings for a Canadian Retail Chain
To gain greater visibility into lease costs, a Canadian national retail chain partnered with Cresa Toronto to review expenses across its portfolio. The process identified billing discrepancies and helped the client recover meaningful cost savings.
Success Story
Correcting Improper Cost Recovery and Securing Savings for an International Industrial Company
After relocating to a new facility, an international industrial company asked Cresa Toronto to review its lease reconciliations. The team identified improperly recovered parking-related capital costs and worked with the landlord to correct the charges, resulting in over $200,000 in future savings.
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HOW IT WORKS
Our Lease Expense Review Process
01. Review of Historical Data
Examine prior years’ rent expenses and identify discrepancies between estimated and actual charges
02. Analysis of Cost Trends
Track percentage increases in additional rent, analyze how costs have changed over time, and identify unusual cost fluctuations
03. Identification and Resolution of Discrepancies
Identify and recover historic overcharges, while preventing these overcharges from recurring in the future
We recommend clients perform a desktop review annually; however, performing an in-depth lease analysis every year will ensure consistent compliance with the lease over the term.
We provide customized attention to ensure that your best interests are at the forefront of everything we do.
A Desktop Review is a high-level review of the expenses paid, compared to what is indicated in the lease agreement. A Lease Analysis is a qualitative, in-depth investigation of all lease clauses and charges.
Lease Expense Review is an investment that pays off. Experience shows that close to 70% of the lease documents our experts reviewed contained errors. Our goal is to achieve cash recovery and cost avoidance for you while eliminating potential risks from your lease terms.
A properly conducted lease expense review does not adversely affect the tenant-landlord relationship. Instead, it enhances transparency, strengthens communication, and fosters a more collaborative and informed partnership. Through comprehensive lease analysis and financial documentation review, this process ensures accuracy in budgets, statements, and reconciliations. The result is a fair and professional assessment that benefits all parties while reinforcing trust and clarity between tenants and landlords.
Clients often hesitate to initiate lease expense reviews due to a limited understanding of the process and its advantages. To mitigate these concerns, clear guidance is provided on how the review ensures financial accuracy and compliance. Another prevalent hesitation stems from the perception that questioning lease-related expenses may strain the tenant-landlord relationship. However, tenants have a contractual right to verify that charges align with the lease agreement. Most commercial leases include provisions allowing tenants or their appointed consultants to review expense documentation. This process promotes fairness and transparency, benefiting both parties.
The ideal time to conduct a lease expense review is approximately two years into a new lease term. Identifying discrepancies early allows for necessary adjustments that provide financial benefits throughout the remainder of the lease. For example, in a five-year lease, corrections made in the second year can generate savings over the next three years, while in a ten-year lease, savings extend over eight years. Regular reviews are particularly critical for long-term leases, as changes in building measurements, property management practices, and administrative personnel can impact expense calculations. A mid-term review, such as at the five-year mark of a ten-year lease, helps maintain accurate and equitable lease administration over the lease duration.
EXPERTISE
Our Experts
LEASE EXPENSE REVIEW
How does your 2025 additional rent compare to the prior years and the industry average increase?
We know that for most organizations, a hybrid structure is inevitable. But a hybrid model isn’t one size fits all – it’s a spectrum. Understanding where your organization falls on the spectrum is the key is creating a sustainable workplace strategy.
Most leases allow landlords to adjust how operating costs are calculated if they believe the change is reasonable, which can result in costs increasing or decreasing.
For tenants, it is important to review the lease language carefully to understand their rights when challenging a landlord’s determination of Additional Rent. In many cases, tenants have only a limited time to request supporting documents.
Understanding your rights under your lease is critical, especially if you believe you are being charged more than your fair share. Reading the fine print and acting promptly when requesting and reviewing a landlord’s supporting materials has never been more important.
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