Lease Administration Benchmarking Survey
Deloitte Financial Advisory Services LLP
Maintaining or lowering costs is now more critical than ever, causing real estate executives to reevaluate current lease administration practices.
C-suite executives have found lease audits to be a valuable tool in identifying potential cost savings. Deloitte Financial Advisory Services LLP’s (Deloitte FAS) 2010 lease administration benchmarking survey found that roughly two thirds of tenants that conducted lease audits said that they had resulted in cost reductions, while about half of the owners who conducted lease reviews said they had resulted in increased expense recovery. While the benefits achieved depend on the nature of the lease, in Deloitte FAS' experience, lease audits* and lease reviews can result in cost reductions or expense recovery of $0.50 to $2 or more per square foot.
Given the current economic environment, companies are attempting to maximize cost saving opportunities. The professionals of Deloitte FAS’ Lease Audits for Tenants group, part of the Real Estate Consulting service line, are seeing an increase in the number of tenants performing lease audits, and those that were performing them previously are auditing a higher percentage of their leases.
To learn more about how executives effectively manage lease portfolios, download the 2010 lease administration benchmark survey findings below.
*The term "audit" as used herein is not and should not in any way be construed to be synonymous with the terms "audit," "audit procedures," "compilation," "review" or any form of "attestation" service as described in the pronouncements on professional standards issued by the American Institute of Certified Public Accountants.