Popular Retail Chain

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Cresa Team

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client objectives and results

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This popular Canadian retail chain store has a portfolio of over 160 leased locations.
Following internal changes, the client decided to contract the lease expense review duties to Cresa Toronto.
The challenges were many, as some of the files were handled by their legal department, due to disputes with the landlords.

Cresa Toronto was assigned 40 files that came with major issues and difficulties, which the team successfully brought to completion.
The team identified errors in areas such as:
- Capital expenditures recovered in the fiscal year in which they were incurred versus being amortized over the assets’ economic lifespan;
- Duplication of management fees;
- Recovery of administration fee on excluded expenses;
- Recovery of expenses specifically excluded in the lease, such as structural costs, expenditures at the landlord’s sole cost and expense, capital items, etc.;
- Recovery of a management fee that exceeded the maximum cap allowed.
Of the 40 files assigned to review, Cresa Toronto has recovered $260,000 in savings in just 1 year.