COVID-19 has put a halt on business operations and in turn dramatically affected the accessibility of physical office space. We believe that Annual Pass-Throughs (i.e. Operating Expenses and Real Estate Taxes) will be impacted one way or the other.
Whether this means Tenants will receive a credit at the beginning of 2021 or Tenants will owe a payment, we cannot conclusively tell yet.
However, there are a few main contributors as to why a TDKCA lease analysis is highly recommended:
- “Occupancy” has reduced dramatically, but what does this mean?
- Janitorial Expense May Increase
- Amenity Space Closures
- HVAC Capital Expenditure
- 2020 Operating Expense & Real Estate Tax Base Year (Full Service Lease)
