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STREAMLINED LEASE EXPENSE REVIEW YIELDS SIGNIFICANT SAVINGS FOR RETAIL CHAIN

Client
  • Popular Retail Chain
Superficie
  • sq. ft.
Industrie
Emplacements
  • Multiple locations
Services Fournis
Équipe Cresa Cresa Office

Client Objectives

  • This popular retail chain store had a portfolio of over 160 leased locations.
  • Following their lease administrator’s departure, the client decided to contract the lease expense review duties to Cresa Toronto.
  • The challenges were many as some of the files were handled by their legal department, due to disputes with the landlords.

Results

  • Cresa Toronto was assigned 40 files that came with major issues and difficulties, which the team successfully brought to completion.
  • The team identified errors in areas such as:
    - Recovery of capital expenditures in the fiscal year in which they incurred versus being amortized over the assets’ economic lifespan;
    - Duplication of management fees;
    - Recovery of administration fee on excluded expenses;
    - Recovery of excluded expenses (i.e. structural, expenditures at the landlord’s sole cost and expense, capital items, etc.);
    - Recovery of a management fee that exceeded the maximum cap allowed.

  • Overall, this Cresa Toronto client recovered $260,000 in savings in just 1 year.