Stop overpaying! Get ready for your Q1 Operating expense reconciliation

Attention commercial real estate (CRE) tenants and occupiers - your landlord should send you operating expense pass-through statements in the first quarter of 2026. This mechanism allows the landlord to recoup operating expenses at your property - and it can be a critical moment for your bottom line!

What are Operating Expense Pass-Throughs?

Operating expense pass-throughs are a standard component of most commercial leases. They allow the landlord to recover their costs of operating the building, including property taxes, insurance, utilities, maintenance, and property management fees. This mechanism transfers the risk of rising operational costs from the landlord to the tenants. Tenants pay a pro-rata share based on the space they occupy.

The Costly Truth: Errors are Common

The simple fact is that these pass-throughs can be complex calculations - involving base years, expense caps, gross-up provisions, and multiple line-item exclusions - and are prone to errors. We frequently see:

• ❌ Capital Expenses (major, long-term improvements) incorrectly billed as routine operating costs.
• ❌ Incorrect Square Footage calculations leading to an inflated pro-rata share.
• ❌ Violations of negotiated lease caps or inclusion of specifically excluded items.
• ❌ Accounting mistakes that fail to adhere to lease language and industry standards.

These oversights can compound year after year, resulting in significant overcharges.

Partner with INSPIRE for Validation

Don't just pay the bill. As Ronald Reagan famously stated, it is imperative that you "Trust but Verify" the documents provided by the landlord.

INSPIRE offers specialized advisory services to help CRE occupiers meticulously review and validate every line item in your reconciliation statement.

Our team ensures you're billed the right amount by confirming that:

• The charges are strictly consistent with your lease language, including all negotiated exclusions and caps.
• The operating expense calculations adhere to industry accounting standards.
• You are only paying your accurate and fair proportionate share of recoverable expenses.

Prepare now to engage an expert! 

By partnering with INSPIRE in Q1 2026, you can secure cost certainty, recover past overcharges, and protect your company's long-term financial health.

Click this link to schedule a free initial consultation: https://outlook.office365.com/book/[email protected]/?ismsaljsauthenabled=true