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Rent Escalation and Common Area Maintenance Clauses in Commercial Leases


Make sure you understand what net and gross actually means in your lease.

Operating expense provisions are some of the most heavily negotiated sections in commercial leases. These provisions obligate the tenant to pay a defined share of certain defined costs of operating the building or center. This article will explore some of the key issues in negotiating and enforcing operating expense provisions in leases.



Marc E. Betesh, Esq., MCR.h

Marc E. Betesh, Esq., MCR.h

Visual Lease

  • Founder and CEO of KBA Lease Services, the leading lease auditing firm, and Visual Lease, the #1 lease optimization software provider
  • Practiced law in New York City where he negotiated commercial leases; as an attorney, Betesh became widely recognized as an expert on commercial lease negotiation, lease interpretation, and expense reimbursement clauses; during this time, he conceived the idea of lease auditing and introduced it to the commercial real estate industry, which led him to create his two companies
  • Instrumental in shaping the foundation of lease accounting standards in the industry, which are still in practice today, making him a thought leader on the standards (GASB 87, ASC 842, and IFRS 16)
  • Regarded as top-rated faculty at CoreNet Global Learning and often lectures on lease topics at New York University’s Real Estate Institute, American Bar Association, Association of the Bar of the City of New York, Practicing Law Institute, ICSC, Lorman Education Services, and the Institute of Internal Auditors
  • Active member of the New York and New Jersey Bars
  • 2018 and 2019 Finalist for The EY Entrepreneur of the Year New Jersey Awards
  • KBA was the pioneer of commercial lease auditing in 1985 and remains the signature firm in the industry; it has represented thousands of companies in almost every leasing market within the U.S., helping them to eliminate overcharges in their commercial leases; Visual Lease is the #1 lease optimization software provider that helps organizations become compliant with FASB, IFRS, and GASB lease accounting standards, while simultaneously improving the financial, legal, and operational performance of their leases; it incorporates numerous lessons learned through KBA’s work and is one of the top systems in its field, used by 800+ organizations to manage 500,000+ real estate, equipment, and other leased assets
  • In 2021, Visual Lease was named a Best Place to Work in New Jersey by NJBIZ and ranked in the top 20% of the Inc. 5000 list and included in The Deloitte Fast 500™ for the second consecutive year; the organization was also included on the list of The Top 100 Software Companies of 2021 by The SoftWare Report and honored with a Bronze Stevie® Award in the Fastest Growing Company of the Year category in The 19th Annual American Business Awards®
  • J.D. degree, Georgetown University; B.A. degree, Temple University
  • Can be contacted at [email protected] or www.visuallease.com

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