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STREAMLINED LEASE EXPENSE REVIEW YIELDS SIGNIFICANT SAVINGS FOR RETAIL CHAIN
Emplacements
- Multiple locations
Services Fournis
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.