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:

  1. “Occupancy” has reduced dramatically, but what does this mean?
  2. Janitorial Expense May Increase
  3. Amenity Space Closures
  4. HVAC Capital Expenditure
  5. 2020 Operating Expense & Real Estate Tax Base Year (Full Service Lease)

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