Lease audit caught a 2% escalator hiding in the parking section

Last quarter I was reviewing a 15,000 SF office deal near Union Station and the management company had tucked an annual escalator into the common area maintenance line, not the base rent where everyone looks first. My broker never flagged it because he only ran the numbers on the first page of the proforma. Has anyone else caught sneaky charges buried in the fine print of Denver leases, or am I just dealing with a weird landlord?

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1 Comment

danielr941d ago

Ive seen that exact setup before, but honestly, 2 percent is pretty tame for Denver these days. Most CAM clauses Ive looked at in the last few years have some kind of annual bump buried in utilities or janitorial, not just parking. The real issue is your broker only ran page one, that is more common than people admit, but it also kind of falls on you to read the full lease. I get why you are annoyed, but this is pretty standard landlord behavior, and a 2 percent escalator is actually on the low end, Ive seen 3 or 4 percent in newer buildings. Maybe your landlord is weird, but I wouldnt lose sleep over this one.