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Each year National Lease Advisors saves in excess of $2,000,000 for our lease administration clients. We take pride in achieving these savings and believe that looking for recoveries, big and small, is essential to adding value to our clients and building trust.
We also understand that most of the recoveries are a result of human error and not malice, so we always take a cordial, non-confrontational, approach when presenting our findings to landlords. This approach ensures that errors are corrected and our clients’ relationships with their landlords remains harmonious.
The bulk of the savings comes from auditing operating expense statements, however we are able to achieve recoveries in many more areas of our process. Below are a real examples of how we have saved our clients money, just in 2024.
Amount Saved: $125,000
Recovery Type: CAM/Operating Expenses
Client Use: Industrial
The landlord failed to apply a 6% cap on controllable expenses to the 2024 operating expense budget. NLA identified this oversight and reached out to the landlord to have the cap applied. The landlord was at first resistant to the change, but we were able to explain that the cap was a protection in the lease that needed to be applied. The revised budget resulted in $25,000 in savings for our client this year and $25,000 per year for the rest of the term ($100,000 total).
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Amount Saved: $136,000
Recovery Type: Invoice/Lease Review
Client Use: Office
Our client was relocating a large office and needed to holdover at the current office. As a result of the holdover, the landlord invoiced for 200% of the base rent and CAM. Upon receiving the invoice, NLA reviewed the holdover provision in the lease and found that the holdover fee was 150% and limited to only the base rent. We reached out to the landlord to point out the error and the invoice and they provided a revised invoice resulting in savings of $136,000 for our client.
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Amount Saved: $45,000
Recovery Type: Subtenant Invoicing
Client Use: Office
When onboarding a client, we noticed that the client’s subtenants were not paying the proper operating expenses outlined in the sublease. The subleases called for payment of a pro-rata share of expenses that had not been changed since the subleases had commenced. NLA reconciled the amount due from the subtenants based on the budgets and reconciliations received from the master landlord and invoiced the subtenants for the amount due. The reconciliation and invoicing of the subtenants’ operating expenses resulting in an additional $45,000 being received by our client.
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Amount Saved: $8,000
Recovery Type: CAM/Operating Expenses
Client Use: Retail
Our client’s lease commenced in April 2023. The landlord did not prorate the number of days occupied in the year on the 2023 CAM reconciliation, billing our client for a full year instead of the actual occupancy period. NLA corrected this error, resulting in $8,000 in savings.
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Amount Saved: $2,000
Recovery Type: Incorrect Rent Schedule; Onboarding
Client Use: Medical
When onboarding a new client, we noticed the rent invoice for our client’s storage space was $60 higher than what was stated in the lease. We reached out to the landlord for an explanation and found that they had been escalating the rent each year when the lease stated it was fixed for the term. The corrected rent schedule will saved our client $2,000.
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Amount Saved: $1,000
Recovery Type: CAM/Operating Expenses
Client Use: Retail
The landlord had the wrong amount listed as the impounds paid by our client on the 2023 reconciliation. NLA caught this discrepancy and ensured it was corrected, saving our client $1,000.
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Amount Saved: $25,000
Recovery Type: CAM/Operating Expenses
Client Use: Office
Our client’s lease had a cap on controllable operating expenses from 2019. The landlord reset the base year for the operating expense cap to 2021, using COVID as an excuse, but the lease did not permit such a reset. NLA intervened, presented the lease language to the landlord, and had the base year reset corrected, saving our client $9,000 immediately, and $25,000 total through the remainder of the term.
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Amount Saved: $14,000
Recovery Type: CAM/Operating Expenses
Client Use: Office
Our client reduced their space in 2023. On the 2023 reconciliation, the landlord used the pro-rata share of the premises before it was reduced. NLA identified the mistake and had the landlord correct it, resulting in $14,000 in savings for our client.
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Amount Saved: $4,000
Recovery Type: Late Fee Reversal
Client Use: Industrial
HCC was charged a late fee due to an issue with their AP system resulting in rent being sent late. Whenever a client receives a late fee, we request that the landlord waive the fee. NLA requested that the late fee be waived and the landlord agreed due to our client’s history of timely payments. The late fee reversal saved our client $4,000.
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Amount Saved: $8,000
Recovery Type: Incorrect Rent Schedule
Client Use: Retail
NLA identified an error in the landlord’s rent schedule. The lease defined the Commencement Date as the date the space is delivered to our client, and the Rent Commencement date as 120 days after. The rent increase was to occur on the anniversary of the Rent Commencement date, however the landlord’s schedule increased 120 days early on the Commencement date. NLA pointed out this error, and the landlord corrected it, saving our client $8,000 throughout the term.
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Amount Saved: $5,000
Recovery Type: Rent Invoice Review
Client Use: Office
The landlord was charging sales tax on abated base rent. NLA challenged this charge, and the landlord agreed to waive the sales tax, saving our client $5,000.
About National Lease Advisors: National Lease Advisors is a leading provider of lease administration services, specializing in helping businesses effectively manage their real estate portfolios. Their comprehensive range of services includes CAM reconciliation reviews, lease audits, rent statement analysis, and lease accounting. With a focus on quality service and client satisfaction, National Lease Advisors helps clients manage their lease portfolios effectively, reducing costs and optimizing their real estate strategy.