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Lease Audit Services

Colliers Lease Audit Services provides a detailed critical analysis of all the financial terms of a tenant’s lease documentation in relation to the landlord’s buildings in order to ensure that the tenant pays no more than is prescribed in the lease and by industry standards.

Our Lease Audit Process

Internal Audit/Desk Audit:

Colliers performs a detailed review of landlord’s billings in relation to the lease documentation to ensure that all costs have been calculated in accordance with the terms of the lease, and by industry standards.
Colliers prepares a preliminary report for the client, highlighting any anomalies or issues identified as a result of the above.
 
Customer-Review-Period

External Audit:

Colliers performs a review of the landlord’s books and records (with client’s prior approval), if warranted and identified under Phase 1, and if allowed under the terms of the lease.
Capital Solutions Services

Conclusion, Negotiation & Recovery:

With client’s prior approval, once Colliers has  conclusively determined that there has been an overbilling through either Phases 1 or 2, Colliers will proceed to demonstrate to the landlord the basis for the overcharge and will solicit an adjustment through either a refund or credit.
Consulting Strategic Planning

Common Billing Errors

  • Charging for more space than occupied.
  • Incorrect calculation of gross up.
  • Incorrect application of caps, CPI, or other capping mechanisms.

  • Change in landlords/property managers that result in incorrect information transfer.
  • Inclusion of expense items were no such expense provision is provided in the lease.

  • Utility costs not properly allocated.
  • Lease amendments regarding operating costs or square footage not reflected in billings.

FAQ

Real estate occupancy costs represent the second or third highest operating cost for most commercial tenants, yet often receive little or no attention by corporations as they strive to deal with their core business. Lease audits are an important tool allowing corporations to reduce costs and improve their bottom line.
Our dedicated Lease Audit team has years of experience in office, industrial and retail leases in addition to landlord billing practices. Our clients vary from multinational corporations with millions of square feet of leased space to small individual tenants. Colliers has saved its clients millions of dollars in rent and related occupancy cost overbillings over the years. We work in a professional, courteous manner, and are always mindful of maintaining good landlord and tenant relationships.

Learn more about our full service offering

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The refund you achieved for us on our facility through your lease audit was significant and provided an additional bonus to our bottom line.
William Simeon, Finance Manager
William Simeon, Finance Manager Starr Culinary Delights Inc.

Our Expert

Frank Iannarilli | Colliers | Toronto West

Frank Iannarilli

Director, Lease Consulting Services

Toronto West

1 416 432 2834
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Frank Iannarilli is a real estate consulting specialist whose lease cost service provides a detailed critical analysis of the financial terms of a tenant's lease documentation in relation to the landlord billings in order to ensure that the tenant pays no more than is set out in the lease.  Frank works on behalf of office, industrial & retail clients tenancies throughout North America and has saved them millions of dollars.

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