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Lease audits

You need an expert to ensure you don't leave money on the table.

Without a lease audit expert examining your lease terms, you could be leaving millions on the table. Landlord billing errors are a reality, but at JLL, our lease audit experts have the experience to identify and correct those errors bringing the savings back to you.

Timing matters
Don’t wait to contact a lease auditing professional since you may have a limited amount of time to exercise your lease audit rights. By working with a JLL professional early in the process, you can be assured you do not miss this opportunity.

Audit Triggers
One or more of the following events may make a lease audit necessary to ensure that you are paying the proper operating expense share.

    1. Ownership/Building Management Change
      A change in building ownership could result in a change in billing methodology. Expenses that were previously not passed-thru to tenants could be included by the new ownership or building manager.

    2. Significant Increase in Expenses
      If total operating expenses (net of real estate taxes) have increased by more than 5%, you may need a lease audit to determine whether the increased expenditures are reimbursable under the terms of your lease.

    3. Fluctuations in Expense Categories
      Significant year over year variations in expense category totals and/or changes in the titles of expense categories could signal a change in the accounting treatment of expenses and/or the inclusion of ineligible expenses. 

    4. First Sight of Your Base Year Figure
      A base year audit is very important! The goal of the audit is to document the billing methodologies and expense inclusions and exclusions. It will also ensure that your base year accurately reflects a full year of expenditures.

    5. Building Activity
      Did you notice a large change in building occupancy during the year? Building renovations or major equipment replacements? Weather damage? An audit is necessary to ensure that the operating expenses do not include any expenses that are not permitted by lease.

Why JLL?

We have a proven track record of uncovering maximum cost savings in our lease audits. We approach each lease audit with a thoroughness and understanding that drives maximum cost savings. We have conducted field audits in every state and in all major cities in the United States and Canada. Our global Lease Administration teams perform more than 20,000 desktop audits each year. These audits have resulted in thousands, and in some cases millions of dollars in recoveries for our clients.

We have dedicated lease audit experts who average over 15 years of professional real estate experience. Our professionals understand how to reduce your risk while uncovering and negotiating the highest savings possible. Our unparalleled expertise combined with our solid reputation provides us with immediate credibility with landlords and often provides an advantage in negotiations.

We take a holistic view for lease audits and understand the bigger picture. We work toward the most aggressive cost savings we can get for you, while also ensuring your tenant/landlord relationship remains positive. In addition, we continue to follow-up beyond the original audit for up to two years or through lease expiration to ensure the findings are implemented in future years and maximum savings are achieved.