Richvale reviews occupancy cost provisions and compares them to market and cost trends to provide visibility into lease obligations and areas of potential concern. Our objective is to help clients better understand operating costs, identify unusual trends, and support informed business decisions.

Areas of focus include:

• Base Year/ Expense Stop Mechanics – how the base year is established, what’s included in the stop, and how increases above the stop are calculated and billed back.
• Audit Rights – tenant’s right to request additional information and review the landlord’s books and records.
• Controllable vs Non-Controllable costs – whether the lease caps increases are capped accordingly.
• Operating Costs / CAM – definition, inclusions, and exclusions
• Property Taxes – calculation mechanism
• Insurance – coverage and allocation
• Management Fees – calculation methodology
• Gross-Up Calculations – definition and methodology
• Capital Expenditure Passthroughs – whether landlord capital improvements can be passed through to tenants, and if so, over what amortization period and at what rate.