Top 5 Audit Risks in Commercial Leases

Negotiating a commercial lease is high-stakes. Hidden clauses can cost thousands over the lease term.

1. Operating Expense Pass-Throughs

Ensure that capital improvements are not hidden within operating expenses.

2. Calculation of Rentable Area

Verify the "load factor" used to calculate rentable vs. usable square footage.

3. Restoration Clauses

Watch out for requirements to return the property to its original "shell" condition, which can be extremely costly.

Abhishek Singh

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