EFFICIENT LEASE PORTFOLIO REVIEW LEADS TO SUBSTANTIAL GOVERNMENT ENTITY SAVINGS

Client
  • Ontario Government Entity
Space
  • sq. ft.
Industry
Locations
  • Multiple locations across Ontario Canada
Services Provided
Cresa Team Cresa Office

client objectives and results

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Client Objectives

  • This Ontario government client initially assigned the Cresa Toronto team with a number of files to review.
  • Given the team’s immediate successes, a few months into the assignment Cresa Toronto was asked to review their entire portfolio of files.

Results

  • Following a thorough review of both current years and past years’ reconciliations, the team identified errors in areas such as:
    • Recovery of excluded items (i.e. construction fees, interest on undepreciated capital costs, etc.)
    • Historic tax appeal credits not refunded at the time
    • Excessive office tenants' specific costs allocation
    • Management fee higher than allowed in the lease
    • Inaccurate proportionate share calculation
    • Inaccurate rent payment credit
    • Incorrect length of depreciation
    • Capital costs recovered in the then current year versus being amortized over its economic useful life
    • Inaccurate reconciliation altogether
    • Rent charged beyond the agreed upon term

  • Overall, Cresa Toronto’s client recovered an excessive amount of dollars in overcharges from the previous several years.