Written for the person who owns the leases
Specialty retail chains
Malls and lifestyle centres, institutional landlords, and the most heavily drafted audit clauses in the category.
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
80 sites at 2,800 square feet and $14.00 per square foot is $3,136,000.00 of operating expenses billed in a year. At the $62,720.00 to $156,800.00 band typically recoverable on review, that is what a first pass puts at issue, before the years still open multiply it.
Pro-rata denominator definition
Share recomputed from the lease-defined denominator; occupied versus leasable; stale after remeasurement or expansion
Controllable cap arithmetic
Prior year times one plus the cap, compounded only if cumulative
Marketing fund, promotional charges and landlord contribution
What your lease forms have in common
Institutional forms restrict the formal audit hardest: a CPA, no contingency, a short window, deemed acceptance. That decides the price, not whether the work can be done, and it makes the deadline the thing that matters most. Marketing funds and promotional charges sit beside the CAM pool with separate caps.
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.