Category Archives: Lease Audit

Lease AuditPre-lease IssuesRent

Tenants: Are You Ready for the New Lease Accounting Standard?

2019 is a big year in lease accounting.  In 2019 (which began December 15, 2018 for fiscal year reporters), publicly traded companies are required to comply with the new accounting standard (ASC 842) and are required to recognize leases greater … Continue reading

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Lease AuditOther Lease TermsPass-throughs

Limiting the Hidden Costs of Office Rent: Operating Expenses & Taxes

A major component (30% or more) of an office tenant’s rent bill is property taxes & operating expenses (“T&O”) which today is on the rise and where tenants have limited control under landlord-favorable leases.  In Chicago, T&O is rising significantly … Continue reading

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Lease AuditOther Lease TermsRent

Operating Expense & Tax Reconciliation Season: Don’t leave Money on the Table

Now that the holiday season is over, ‘tis the season for Operating Expenses and Tax reconciliation for office tenants.  As most office leases allow the landlord to recapture increases in Operating Expenses and Taxes (which tenants commonly pay on an … Continue reading

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ElectricityLease AuditPass-throughs

Florida Tenants – Beware of Double Tax on Tenant Electric Charges

As you’ll soon be receiving Operating Expense reconciliation statements, we wanted to bring to your attention a frequently overlooked sales tax charge on electric.  Florida, as you may recall, imposes a sales tax on rent.  Most leases provide that the … Continue reading

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Lease AuditPre-lease Issues

Proposed Lease Accounting Changes: What It Means To Tenants

Responding to the need for greater transparency in financial markets in the post-Enron era, a new accounting standard is being presented requiring tenants (both public and private companies) to recognize the current and future value of all leases on their … Continue reading

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