Lease Auditing is a Cost Cutting Best Practice Utilized by Leading Financial and CRE Executives
Is There Anywhere CTS Does Not Conduct Audits?
What is CTS’ Business Model?
What Kinds of Companies Use CTS?
What Will CTS Review When Conducting an Audit?
Where Does CTS Generally Find Overbillings and Recoverables?
What Benefits Can I Expect From CTS Services?
Can CTS Customize Its Services to My Company’s Needs?
How Long Does it Take CTS To Commence an Audit Campaign?
Does CTS Have Any Conflicts of Interest? Does CTS Have Ties to Landlords or Property Managers?
What is CTS’ Confidentiality Policy?
How Does CTS Ensure That a Lease Audit Does Not Adversely Affect My Landlord Relationship?
What Compensation Models Are Available To My Company?
What Does CTS Need From Me To Begin A Lease Audit Campaign?
Would A CTS Audit Disrupt My Staff?
How Long Does An Individual Lease Audit Generally Take?
What are Some Warning Signs of Overcharges?
Q: “Is There Anywhere CTS Does Not Conduct Audits?”
A: CTS performs domestic and international lease audits, and has conducted domestic audits for locations in every major, secondary, and most tertiary markets in the United States.
Q: “What is CTS’ Business Model?”
A: CTS is designed to perform comprehensive portfolio-scale and single location lease audits for office, retail, and industrial space leaseholders. Our sole focus is verifying that leasehold expenses are accurately calculated and lease compliant, recovering overcharges to our clients, and creating long term cost avoidance.
Q: “What Kinds of Companies Use CTS?”
A: CTS serves companies across the board and in virtually every market, ranging from global financial firms, major law firms, national retailers, & numerous Fortune 100 to individual leasehold entities. Some of the world’s most respected companies use CTS to verify their leasehold expenses.
Q: “What Will CTS Review When Conducting an Audit?”
A: CTS will review your occupancy and leasehold expenses to verify accuracy and lease permissibility of all landlord issued pass-through charges. Examples of areas of review would include an analysis of landlord utilized billing methodologies such as gross up calculations and any index-driven escalator calculations, HVAC and utilities, real estate taxes, base year calculations, overtime and tenant specific charges, management fee calculations and related party expenses, all categories of sundry charges, etc.
Q: “Where Does CTS Generally Find Overbillings and Recoverables?”
A: Across the many thousands of lease audits performed by CTS, recoverable overcharges have been identified in virtually every imaginable area of landlord issued expenses. Landlords and property managers are not exempt from errors in calculation or application, and landlord staff accountants are not necessarily experts in what may be a permissible expense under a tenant’s specific lease terms. CTS has created hundreds of millions of dollars in cost avoidance for its clients.
Q: “What Benefits Can I Expect From CTS Services?”
A: CTS’ services platform can allow you to recover past and present overcharges, create long term cost avoidance, enhance your portfolio tracking and administration control, strengthen future lease transactions, and may create applicable Sarbanes-Oxley compliance value provided by an independent, third-party expert.
Q: “Can CTS Customize Its Services to My Company’s Needs?”
A: CTS’ client solutions are designed to maximize potential recoveries to our clients while requiring a minimum of our clients’ time. Our clients remain in complete control of the audit campaign. CTS will map its services to your lease administration’s needs and requirements.
Q: “How Long Does it Take CTS To Commence an Audit Campaign?”
A: CTS has the experience and infrastructure in place to immediately transition into a global portfolio-scale lease audit campaign. Through decades of portfolio audit campaign experience, CTS has identified many best practices in campaign initiation, and leverages its proprietary systems to quickly and efficiently undertake audit campaigns.
Q: “Does CTS Have Any Conflicts of Interest? Does CTS Have Ties to Landlords or Property Managers?”
A: CTS only accepts tenants as clients, and does not accept landlord assignments. CTS would have no conflicts of interest in serving your company.
Q: “What is CTS’ Confidentiality Policy?”
A: CTS is extremely sensitive to the confidential nature of your business. All information in our possession is password protected and assessable only to those CTS employees who require that specific information in performance of our services. All CTS employees have executed individual confidentiality agreements.
Q: “How Does CTS Ensure That a Lease Audit Does Not Adversely Affect My Landlord Relationship?”
A: CTS understands and is extremely sensitive to the delicate nature of the tenant/landlord relationship. CTS will not contact any of your landlords on your behalf for any reason until instructed to do so by you. All communications and negotiations are conducted in a diplomatic and professional manner with your relationship with your landlord(s), and your long term relationship with CTS, at the forefront.
Q: “What Compensation Models Are Available To My Company?”
A: CTS is comfortable operating on a variety of compensation models designed to suit our clients’ needs. Compensation models may include a sharing of benefits achieved, a time and materials fee structure, a fixed fee per audit, or a hybrid of the above.
Q: “What Does CTS Need From Me To Begin A Lease Audit Campaign?”
A: CTS would require only a point of contact at your company to authorize landlord contact, and copies of your lease(s) and related billing back up.
Q: “Would A CTS Audit Disrupt My Staff?”
A: CTS performs its work at its offices,your staff will not be disturbed throughout the lease audit process. Once all relevant documentation has been forwarded to CTS, all we require is a single contact with authority to authorize landlord contact and settlements/negotiations on an as-needed basis.
Q: “How Long Does An Individual Lease Audit Generally Take?”
A: Once all required documentation is in CTS possession, an individual lease audit may take anywhere from 30 days to 120 days to reach resolution. Depending on the landlord, potential onsite audit, and scope of overcharges identified, this timeline may vary significantly.
- Significant Jumps in Operating Expenses/Additional Rent
- Change in Ownership
- Sizeable Changes in Building Occupancy
- No Back-Up Supplied to Annual Reconciliation Billing Statements
- Building Undergoing Capital Improvements/Renovation