Lease Audit Services
We constantly invest in the creation of the most “forward thinking,” effective lease audit solutions placing a substantial premium on innovation and continuing process improvement in order to best serve the sophisticated and complex needs of our diverse client base.
As real estate portfolio costs continue to rise, RRG’s client partners find increasing value in our enterprise-wide, data driven, process based lease audit services. We have seamlessly designed and implemented countless sustained, annual recurring lease audit campaigns for our client base, and have the resources available to immediately implement and deploy a customized program across any portfolio.
We pride ourselves on performing all of our services with permanent personnel, and without the assistance or support of subcontractors or third parties. This control mechanism guarantees process efficiency and a consistent level of work product adhering to RRG’s strict quality standards and audit protocols. RRG has concluded that these internal policies provide for increased effectiveness at every stage of a lease audit campaign and ensure the highest level of audit performance. We strongly believe our insistence on never outsourcing any of our lease audit services has resulted in superior work product that has delivered outstanding benefits to our clients in every campaign undertaken.
Material cost savings opportunity exists within every real estate portfolio.
RRG does not have capacity constraints. Our systems leverage proprietary technology, and the experience of our talented professionals to support workflow volume and deliver our services in the most efficient and effective manner possible. RRG maintains the necessary professionals and resources in-house, and does not require any additional capacity, to commence and successfully service any lease audit program in a framework that affords accelerated, sustainable cost savings
In every audit campaign undertaken, our objective is to ensure portfolio-wide compliance. We focus on the delivery of a sound knowledge-based approach, a comprehensive, efficient and refined audit process, and streamlined effective communications and reporting. These critical elements allow for maximum value return to our clients and enable data utilization to proactively address the complexities of real estate portfolio management and optimization going forward.
Service Delivery Scale
Our distinct approach maximizes savings opportunity, requires limited client partner resource investment and allows refined control of campaign scope, strategy and direction.
Audit scope, strategy, structure and process are all critical drivers in the viability and success of any audit campaign. Our awareness of the nuances and complexities of these critical elements supports the formulation of the sound foundation required to deliver dynamic, successful lease audit services. Grounded in a foundation of specialization, experience and accountability, our solutions afford accelerated and sustainable cost savings.
Unique to RRG, our client-specific audit systems are established in the first year of the audit campaign and are designed to support continuous, annual portfolio reviews. At the outset of a new campaign, multi-year audits followed by on-going annual audits normalize operating expenses, identify accurate expense baselines, prevent errors from accruing and establish standards for benchmarking subsequent years. Annual reviews have proven beneficial to our clients as factors contributing to overcharges exist in perpetuity and cannot be controlled by the tenant. These factors include: human error (qualifications, training, turnover, focus), systemic error (accounting, investor relations, exit strategies, affiliations, operating objectives), legacy error (growth strategy, acquisitions, transition programs) and structural error (language, ambiguity, protections/clauses, provision placement).
Lease auditing services are the core competency of RRG and we have built our reputation on exceptional, results driven service delivery.
Audit Campaign Ratios
The foundation of our lease audit process is our extensive analytical and financial analysis capabilities. Our specialized teams of professionals ground each and every audit concern in advanced, sound, supportable financial analysis derived from extensive and varied accounting and finance experience.
RRG’s comprehensive process allows for the implementation of customized audit systems designed to proactively address the challenges inherent to and encountered during a sustainable lease audit campaign. Our main goal during any campaign is to ensure portfolio-wide compliance. RRG’s sophisticated audits analyze and substantiate all charges incurred to ensure compliance with all pertinent lease provisions, applicable accounting principles, real estate benchmarks, marketplace standards, legal precedent and the intent of the parties.
Prior to the implementation of each audit program, and at established annual frequencies thereafter, RRG performs a comprehensive, algorithm-based analysis of the subject portfolio and generates a detailed Lease Audit Priority Report™ which identifies locations believed to afford the greatest savings opportunity to our client. RRG’s scientific portfolio analysis is a critical driver in every audit campaign by providing concrete, data driven direction serving as the foundation of the overall strategy. When detailing the complexities of a real estate portfolio, our team focuses on the overall Exposure Value™ of each location, rather than size/cost thresholds, or other arbitrary metrics. We systematically conduct “deep dive” analyses on client portfolios to determine Exposure Value™ and to support the audit viability locations within a portfolio. We leverage our vast experience by utilizing historical data, trends and models captured by our proprietary technologies and databases to identify additional economies of scale and allow for the inclusion of properties that may not appear to be viable audit candidates based on surface metrics, but become viable due to secondary and tertiary data correlations.
An intricate understanding of a portfolio is imperative to development and implementation of a successful audit strategy.
Our skilled professional teams perform extensive due diligence across the subject portfolio, dissecting the leases and relating cost history information, while taking into consideration the specific economic and time-sensitive provisions outlined within the given leases. It is imperative that this audit due diligence is conducted from a financial, real estate and legal perspective, with the objective of defining the mechanics of each lease, illustrating the negotiated protections/safeguards, outlining the correct expense methodologies and identifying the initial areas of compliance concern; Macro Savings Opportunity™ and Micro Savings Opportunity™.
RRG has instituted quality control measures at every stage of our processes, and our process guidelines govern each step of our unique systems. There are stringent approval processes in place for all procedures, commencing with initial information gathering and continuing through the closure and resolution processes. We track communication, correspondence, update systems, work product, response time, process milestones, information cycling, data collection, cycle times and aging schedules. Our process controls guarantee that all services meet established requirements and are being performed in accordance with our strict standards. Additionally, we have numerous operational company-wide Key Performance Indicators (“KPIs”) that are tracked to guide and gauge our productivity as an organization. We monitor and assesses a significant number of these metrics both internally and externally to measure performance efficiency, and ensure consistent work product.
We design, implement and manage the most effective, efficient and timely lease audit and cost containment solutions available.
Experienced professional teams drive the resolution process which is the most critical process segment of the lease audit system. Audit concerns are grounded in, supported and thoroughly substantiated by the lease, accounting principles, real estate/marketplace benchmarks and legal precedent prior to the preparation of audit reports and/or commencement of negotiations. Every audit and warranted negotiation is handled ethically, professionally and in a timely fashion. We utilize our audit experience and the level of detail in our work product to successfully drive the audit resolution process segment.
We believe that successful lease audit initiatives are formed from a foundation of accountability. Our innovative process ensures we are delivering the highest quality, most refined, lease audit and cost containment services in the world. Our creative solutions maximize savings opportunity, require limited client resource investment and allow for a refined control of campaign scope, processes, strategy, and direction.
Audit Opportunity Paradigm
RRG’s audit campaigns deliver unprecedented, sustainable value.
The value drivers not only relate to savings generation, but also the volumes of operating-centric data captured during each stage of the process.
In each audit campaign, dedicated teams develop customized, vertically integrated reporting and communications plans to ensure fluid transfer of information and critical data for analytics, assessment and process improvement. These plans cover audit process and approval, strategy and reporting, through resolution and collection. Each plan is developed following our clear understanding of our client’s real estate/finance model, reporting structures, compliance standards and its existing, internal communication strategies. Our teams are conscious of client time investment, and each plan provides the necessary control elements, limits unnecessary layers and ensures that the campaigns are supported efficiently.
We consistently enhance internal controls, drive operating efficiencies and add substantial shareholder and stakeholder value.
The end result of successful campaigns can be found not only in measureable cost savings, but also in the comprehensive reporting and data generated. Audit data should be used as the foundation for strengthening lease structure, improving expense language, standards creation and instituting ongoing controls to document, predict and track real estate costs. When these metrics are addressed, cost containment returns are greatly enhanced and real estate portfolios are maintained more efficiently. When synthesized properly, audit results become actionable and the harnessed granular audit data can be leveraged to strengthen internal controls and positively impact all segments of operating strategy.