Lease Renewal / Tax Appeal / Audit
CUTTING CLIENT’S REAL ESTATE COSTS
Landmark engaged an external tax consultant to assist in an audit of previous tax payments while simultaneously contesting the current tax assessment, all with the objective of reducing its client’s future tax obligation.
After almost 2 years, our lease audit efforts resulted in an immediate repayment to the client of $238,883 in overcharged taxes by the landlord, and an annual reduction of $59,523 in future Additional Rent payments.
Furthermore, the tax appeal efforts resulted in a reduced assessed value for the property thereby decreasing future property tax obligations by approximately $14,500.
A below market rental rate was secured. Although this represented an increase over what was paid by the client previously, when factoring in the annual reduction in property taxes the net effect on the client’s gross annual occupancy cost was limited to an increase of 1.71%. This is a significant success in face of Vancouver’s position as one of the most expensive, low vacancy, markets in Canada at the moment.