Negotiating below market transactions has benefitted clients like Fiserv and many others over the years. But by implementing an operating expense tracking process we’ve lowered their costs even more so after their leases were signed.
Operating expense tracking and auditing takes a skill set and diligence that most street brokers just don’t have. What TMC tries to provide beyond tenant rep work is a focus on costs throughout our client’s lease term. The following link Tracking Operating Expenses is an example of one of the ways we focus in on yearly operating expenses for companies. In this case, we tracked diligently the costs of operating expenses for their Fiserv Corillian, Portland, Oregon headquarters location.
With their full service lease and base year format, we collected all of the landlord’s cost estimates for the base year and each year thereafter throughout the term. The process itself allowed us to measure increases in specific categories of OE throughout the term. By discussing operational functions with our client, together we spotted increases that seemed out of line.
In this specific analysis we found a $13,000 increase at one point that we determined with the landlord was a mistaken pass through that had been coded for our client’s HQ instead of another building the landlord owned a few miles away. A direct $13,000 recovery to our client. Caught simply by routine analysis and tracking OE for our client. The landlord had charged our client for striping the parking lot when the actual expense should have been allocated to another property.
We’ve caught excess pass throughs as large as $210,000 for clients by way of this process. Getting this service included as part of our tenant rep services has very much benefitted company’s like Fiserv, a Fortune 500 company that is conscientious about their costs.
If it is for you, contact us.