Cost-Conscious C-Suites Key In on Lease Audits

DALLAS-Making every dollar count is more critical than ever as C-suite teams look for ways to control or reduce the bottom line amid rising concerns of a recession. The need to stretch dollars could drive increased demand for lease audits.

“Smart companies do it. I advise all clients who have larger leases after two to three years to audit leases,” Jim Vanderslice, senior vice president of private capital investment in Dallas for Santa Ana, CA-based Grubb & Ellis Co., tells GlobeSt.com. “The tenant doesn’t have to do it, but I think it’s important that any tenant 5,000 sf and over take a look at it.” The need is particularly critical if buildings change hands or the tenant has been in its space a long time, he says.

In a benchmark survey, the New York City-based Deloitte Financial Advisory Services LLP found 84% of 200 corporate executives realized cost reductions from lease audits, of which 41% reported “significant savings.” On the owner side, 74% reported lease reviews resulted in expense recovery.