Richmond, Virginia – Moreland Property Group, Inc. (MPG) announces its ABA (“Audit, Benchmark, Act”) Lease Analysis Program as an expansion of its asset management and advisory services. The ABA program is designed to identify and recover lost value in the lease agreement and provide landlords, tenants and banks with a complete picture of how their asset and lease compares to the market and identify future profit opportunities and cost savings.
“We have found that almost 85% of tenants are not paying, or being billed, the correct amount according to their lease. Sometimes it’s only a small error, but many times it can result in tremendous cash flow enhancements,” said Brad Rodgers, President of MPG. Some of the common errors that MPG uncovers include discrepancies in common area reconciliations, missed notification dates, and incorrectly calculated escalations. “Any one error can mean thousands of dollars of savings to a tenant or hundreds of thousands of dollars in value for an owner. We’ve had several situations where we have uncovered over $1,000,000 of property value for an owner just by identifying and correcting billing errors.”
In this challenging economy, tenants and landlord alike need to be acutely aware of their specific requirements under each lease. In addition, as banks foreclose on loans they frequently inherit poorly managed assets. As well as auditing each lease, MPG provides a complete abstract of the documents detailing key dates and specific clauses that require action. Failure to perform on required responsibilities could mean losing a valued tenant or missing an opportunity for a below market renewal.
The ABA program also allows landlords, tenants and banks to benchmark their lease(s) against MPG’s proprietary database of lease terms and building financials. “Over the past decade, we have built one of the largest databases of lease rates, terms and clauses as well as building financial data,” Rodgers said. “By benchmarking the data we can uncover inefficient buildings, and non-market lease clauses.”
“I think it’s important to point out that MPG is not a brokerage firm seeking transaction or
management revenues,” Rodgers added. “MPG is an impartial strategic partner to our clients and provides them the knowledge to make informed decisions.” In this economy where growth is limited, MPG is uniquely positioned to help companies find the lost value in their existing assets and lease agreements.
About Moreland Property Group:
Moreland Property Group is a real estate advisory company providing consulting, investment banking and development services to our partners. Based in Richmond Virginia, we work with institutional investors, municipalities and occupiers of real estate to develop and implement creative solutions to their most challenging issues. Moreland Property Group has worked with over 75 public, private and institutional partners on projects totaling over 110 million square feet and valued in excess of $6.3 billion.
Contact: Brad Rodgers
Email: [email protected]