Course Description
Presenter: Mike McConnell, CPM®, RPA
Master the calculations and methodologies used to accurately allocate operating expense recoveries to tenants. In this course, Mike McConnell, CPM®, RPA, builds on the foundational concepts of operating expense recoveries by focusing on the formulas, adjustments, and lease provisions that impact recoverable expenses. You'll learn how to establish total recoverable operating expenses, apply occupancy adjustments (commonly known as "grossing up"), and calculate tenant shares with consistency and accuracy. The course also explores cumulative and year-over-year expense caps, including how they are applied, as well as the circumstances under which capital expenses may be recovered according to lease provisions. Through practical examples and clear explanations, you'll gain the confidence to perform operating expense recovery calculations that are accurate, transparent, and defensible.
Learning objectives:
- Establish total recoverable operating expenses for each tenant
- Accurately adjust applicable variable expenses for occupancy (grossing up)
- Differentiate between types of expense caps and apply them correctly
- Define capital expenses and understand when and how they may be recovered
Mike McConnell is a 35+ year veteran real estate manager. During his career, he has managed and leased all property types, with a specialty in the commercial office sector. Mike is a member of the Institute of Real Estate Management’s faculty and also instructs courses for BOMI.Following his retirement from Highwoods Properties, where he served as Orlando Director of Asset Management, Mike has provided operating expense consulting services and educational programs for industry associations and private organizations. He holds the Certified Property Manager® (CPM®) and Real Property Administrator (RPA) designations and has published articles in the Journal of Property Management.
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