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NNN industrial leases frequently include caps on controllable operating expense recoveries — limits that are negotiated at execution but rarely enforced systematically in property management systems. When controllable expense growth exceeds the cap and the cap is not applied, tenants are overbilled for expenses the lease explicitly excluded. The exposure is particularly significant in long-term NNN leases where compounding cap violations accumulate across many years before surfacing in a tenant audit.
Enforce NNN Expense Caps at Reconciliation
Firststreet extracts expense cap terms from industrial NNN leases and verifies their enforcement against actual expense recoveries at reconciliation, flagging controllable expense overages before statements are issued.
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