Case Studies
The following are some examples of the savings measures achieved on behalf of LAAS’ clients in recent audit assignments:
Washington, DC
LAAS analysis for a law firm located in Washington, DC revealed that the landlord was improperly grossing up utility expenses. Not only did the landlord not properly account for fixed utility expenses associated with building common areas, the landlord was improperly calculating occupancy levels based on a three building complex rather than on an individual building basis. In conjunction with improper capital expenditure pass throughs, LAAS negotiated a settlement in excess of $1.6 million which was refunded to the client as a rental credit.
New York, NY
LAAS successfully negotiated a base year adjustment on a 600,000+ sq. ft. lease resulting in savings in excess of $1.20 per square foot annually and a total of $5.4 million over the remainder of the lease term. In addition to other issues, this audit in mid-town Manhattan disclosed that the base year management fee had not been properly “grossed-up” to reflect full occupancy or take into account substantial free rent during the base year.
Houston, TX
On behalf of a national insurance company, LAAS successfully negotiated a refund of past Texas Margin Taxes to its client. The landlord had improperly categorized the Margin Tax as a real estate or “ad valorem tax”. After consulting with local tax attorneys regarding the definition of ad valorem taxes contained in the lease (versus business and franchise taxes) and the origin of the Margin Tax in the state legislature, the landlord conceded that the tax was not a property tax and that there was not an actual change in the methodology in which real estate taxes were assessed by the taxing authority. The settlement results in savings to the client in excess of $2.45 per square foot over the remainder of the lease term.
Dallas, TX
An audit for a large telecommunications company disclosed that the landlord had not refunded substantial real estate tax refunds obtained by the landlord through the tax appeal process. The client’s refund was in excess of $2.00/sf which was returned to the client after LAAS had fully documented the case.
San Francisco, CA
LAAS successfully negotiated a refund in excess of $475,000 on behalf of an HMO client. The refunds included incorrect overtime HVAC usage and metered electricity charges.
