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The lease audit clause: is it fair for tenants?

By: Series: Journal of Corporate Real Estate ; 6(4) September 2004, 335-343(9)Publication details: 2004Summary: Highly restrictive commercial lease audit clauses have come into vogue in commercial leases over the past decade or so. Their original purpose was to provide a means by which the tenant could verify that the landlord's accounting was reasonable and proper. The reason for its popularity with landlords is that it has evolved into a tool that allows landlords to capture funds in excess of a lease contract. Audit clauses typically relate to operating expense statements - sometimes referred to as either OPE (operating expense) or CAM (common area maintenance) statements.
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Journal article London Journal article 1 Available 127653-1001

Highly restrictive commercial lease audit clauses have come into vogue in commercial leases over the past decade or so. Their original purpose was to provide a means by which the tenant could verify that the landlord's accounting was reasonable and proper. The reason for its popularity with landlords is that it has evolved into a tool that allows landlords to capture funds in excess of a lease contract. Audit clauses typically relate to operating expense statements - sometimes referred to as either OPE (operating expense) or CAM (common area maintenance) statements.