Written for the person who owns the leases
Auto service networks
Pads, outparcels and ground leases, where the question is often whether you belong in the pool at all.
The portfolio below is an illustration, not an average: change the sites, the footprint and the rate on the calculator and the arithmetic follows your own estate.
The arithmetic on a portfolio this size
45 sites at 5,000 square feet and $7.00 per square foot is $1,575,000.00 of operating expenses billed in a year. At the $31,500.00 to $78,750.00 band typically recoverable on review, that is what a first pass puts at issue, before the years still open multiply it.
HVAC: repair versus unit replacement
Resurface versus patch, replace versus repair, unit installation versus service
Tax bill tie-out and proration
Billed amount against the actual bill; fiscal versus calendar year proration
Capital expensed as operating
Replacement, resurfacing or installation billed in one year where the lease excludes or amortises capital
What your lease forms have in common
A pad or an outparcel sits at the edge of a centre and is frequently billed for common areas it does not use, or carries a share computed on a denominator that excludes the anchor while including your site. Parking and lot maintenance is the recurring line, and resurfacing billed as maintenance is the recurring error.
Your portfolio will split three ways
Some of your leases will let us act for you and take a share of what comes back, some bar it and are priced flat, and some bar a representative altogether and run in self-service with your team sending what we prepare. You get the split, site by site, with the clause reason for each, before anything is signed.
Start with five representative sites
Pick five leases that look like the rest of the estate, send the lease and the last reconciliation for each, and you get the findings, the open years and the route per site. It is the fastest way to know whether the same error is on all of them.