Internal Control/Finance 2023 | BOMA International | 8 November 2023 | Online

In most cities, market conditions favor tenants. Lease concessions are common. Hybrid work schedules could impact office vacancies for the next decade or longer, reducing revenue and creating financial pressure for many landlords, office building owners and lenders. Unlike leasing agents, Property Managers and Property Accountants are not usually responsible for generating new sources of revenue. But they ARE responsible for managing in-place revenue.

Escalation income (the total of tenants’ collective shares of a building’s operating expenses) can equate to as much as 50% of Total Revenue for NNN leases and up to 20% for Base Year leases. Each lease is unique, so it can be difficult to accurately determine each tenant’s share of expenses. Nevertheless, it must be done in order to meet each lease’s negotiated economic terms. Fortunately, there are industry best practices and resources available that help you create the best outcome.

Learning Objectives:
At the conclusion of the webinar, you will be able to:
• Identify why escalations matter and understand the purpose of calculating them
• Determine how a building’s occupancy, or lack thereof, impacts escalation income
• Effectively communicate with team members, such as owners, asset managers, and property accountants, to accurately calculate escalations
• Choose resources and solutions that will reduce errors, maximize accuracy, and improve tenant trust

2023 Speakers

Bill Brownfield
Founder, Brownfield & Mayerhofer

Larry Mayerhofer
Founder, Brownfield & Mayerhofer