Building Real Estate Tax & Operating expenses Passed thru to tenants

The end of the 1st quarter is when most commercial buildings will account for the above referrenced expenses for the prior calander year. Then those expenses will be allocated to each tenant. This is most usually done based on the tenants prorata share of the building they occupy. The prorata share expenses will then be compared to what was paid into escrow (if any) and overages will result in an additional invoice....over paid will result in a credit or payment to the tenant. The above is an overview. Each lease has to be reviewed for specifics. Considering rent is typically the 2nd or 3rd most expensive line item on most firms financials allocating time toward controlling this expense is wise. I will be happy to provide you with evaluation to determine if this matter has been appropriately handled. Please Contact me at 312-464-1030 x17 Keith Cunliffe