[IMGCAP(2)]Vanderslice confirms that it takes a specialized skill set to audit leases, but "it's definitely an important aspect of the business." Front-end due diligence for leases always includes forensic analysis for the space, but the need for periodic reviews is equally as important as years pass and operating expenses change, says the veteran, who is hosting a 1031 exchange and tenants-in-common investment seminar Nov. 18 at Three Lincoln Centre at 5430 LBJ Frwy. in Dallas. The breakfast meeting qualifies for one hour of continuing education credit.

Audit rights are required lease language, as is fine-print explanations targeting operating expenses, real estate taxes, base years, pro rate shares, inclusions/exclusions, windows, occupancy gross-ups and "other potential protections from overly aggressive pro-landlord language," Deloitte's team cautions.

"More than ever, in today's challenging economy, landlords appear to be striving to maximize revenues and tenants are, naturally, trying to minimize costs," Josh Leonard, a Deloitte partner in Los Angeles, says in a prepared statement for GlobeSt.com. "Landlords have largely shifted their focus from acquisitions of new holdings to increased emphasis on management and maximizing the value of their existing investments through leasing and tenant billing efforts."

Through reverse lease audits, building owners can assess pass-through costs and expenses "as well as direct billings being within the confines of the specifically negotiated tenant leases," Leonard explains. "Lease audits are a low-risk way for tenants to potentially improve internal controls and assess whether they are being billed by their landlords in accordance with their leases."