Importantly, CyberLease’s audit program is coordinated with our clients, including members of their brokerage and legal teams, to ensure the audit process complements our clients’ larger real estate objectives. This strategic approach to lease audits allows our clients to obtain the greatest possible benefits, where and when they are most needed, from the audit program. In other words, there are occasions when audits might need to be performed for reasons other than simply returning overcharged amounts to the client's bottom line. Because we view our role as being one member of our client’s real estate team, our clients can easily present a consistent message to their landlords and internal clients, while maximizing the overall benefits of their goals.

Once the "strategy" of each client's audit program is aligned with the client's bigger picture real estate objectives, CyberLease then works with the client to prioritize which locations should be reviewed and audited first. This process involves a detailed ranking of the leases in the portfolio based on the following criteria: lease expiration date, leases with expected expansion / contraction activity, locations with large additional rent exposure, audit windows and their impact on base year expenses, changes in building ownership, market and landlord-related issues, etc. Notably, CyberLease's audit process does not focus on the size of the lease as being a leading criteria for prioritization.

CyberLease's approach to conducting lease compliance audits and the general order of events in an audit are best explained by the following illustration:

Continuing Service

Following the completion of any audit, CyberLease continues to serve its clients in order to ensure future annual escalation statements and other lease provisions are implemented in accordance with the terms of the lease and any settlement agreement connected with the audit.  This ensures our clients receive the long-term benefit from the entire audit program.

Audit Window Protection

CyberLease assists its clients in ensuring any deadlines or “audit windows” in its leases are identified and, to the fullest extent possible, met or preserved.

Training

CyberLease provides educational training to its clients personnel and advisors, including its real estate attorneys, focusing on preventative measures to help our clients reduce future rental obligations.

Lease Language Negotiation

CyberLease works with its clients, and their attorneys and brokers, to ensure new leases incorporate the most favorable provisions possible.  Proactively managing the wording of leases will not only reduce our clients’ rent expense / exposure in the future, but also make future audits more productive.