Case Study #3: Revising the gross-up methodology used by the landlord The Client: A very large financial services firm leased 80,000 rsf in a 400,000 rsf office project in Southern California. The Opportunity: The lease included a provision requiring the landlord to "gross-up" expenses to reflect operating expenses that would have been incurred had the building been fully occupied. The Process: RTG reviewed the gross-up methodologies employed by a prominent national landlord. We challenged their assumptions and formulae related to electrical utilities and successfully induced them to engage an outside utility consultant to review their methods. The Result: The landlord’s third party utility expert validated RTG’s approach, forcing the landlord to pay an immediate refund of $65,000 to our client plus similar annual savings for the remaining years of the lease.   CLICK HERE FOR PRINTER-FRIENDLY VERSION OF THIS PAGE