Improving Your Escalation Billings
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THE PROBLEM: Office building vacancies nationwide are higher than ever, reducing income.
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.
So … what’s the best way for Property Managers and Property Accountants to quickly impact a property’s cash flow?
ONE SOLUTION: Get your escalation billings in order.
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
Take Advantage of our Group Registration Rates!
Fill in and submit the form linked below to education@boma.org at least 2 business days prior to the webinar start date.
Group Registration Form
Bill Brownfield
Founder
Brownfield & Mayerhofer
William H. Brownfield is a Counselor of Real Estate (CRE) and a Certified Commercial Investment Member (CCIM), and previously held the Certified Property Manager (CPM) designation.
Bill has been responsible for management activities of more than 28 million square feet of office properties in markets across the United States. He has also been involved in the acquisition and disposition of properties with an aggregate value in excess of one billion of dollars.
Bill has served as the 2005 chair of the Counselors of Real Estate, Houston/Gulf Coast Chapter and as a past board member of Houston’s CCIM chapter.
A recognized expert in several disciplines of commercial and investment real estate, he now serves as co-owner of a privately owned real-estate investment firm in Texas and as a partner in Brownfield & Mayerhofer. He is the author of The Escalation Handbook for Office Buildings, published by BOMA International.
Since 1986, Founders William H. Brownfield, CRE, CCIM, and Lawrence M. Mayerhofer, CPA, have been providing solutions to the operating-expense escalation issues of commercial real estate clients. Having addressed complex matters in hundreds of office buildings and thousands of leases, their collaboration brings matchless practical experience to each engagement and every client problem. Their experience is augmented by a shared commitment to building strong, enduring and mutually beneficial relationships between building owners and their tenants.
Larry Mayerhofer
Founder
Brownfield & Mayerhofer
Lawrence M. Mayerhofer is a Certified Public Accountant with more than 30 years of real-estate accounting experience.
Larry co-founded Brownfield & Mayerhofer in 1998. During a 23-year period with Equity Office Properties Trust, Larry served as Vice President of Property Accounting, where his responsibilities included managing the escalation process for more than 12,000 leases annually.
After leaving EOP, Larry led a team of consultants that implemented the Yardi CAM module for two national clients.
An accomplished leader in creating escalation standards, Larry led the design team in the creation of the ALPHA Office Escalations software and provides support for its users. He is the co-author of The Escalation Handbook for Office Buildings, published by BOMA International.
Since 1986, Founders William H. Brownfield, CRE, CCIM, and Lawrence M. Mayerhofer, CPA, have been providing solutions to the operating-expense escalation issues of commercial real estate clients. Having addressed complex matters in hundreds of office buildings and thousands of leases, their collaboration brings matchless practical experience to each engagement and every client problem. Their experience is augmented by a shared commitment to building strong, enduring and mutually beneficial relationships between building owners and their tenants.
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