Reducing Fees Saves Customer $9M

National bank leased a 900,000 square feet of office space in Chicago, IL. CMG's Group Member reviewed the lease and analyzed all available charges since lease commencement in 2003.

At the time the lease was negotiated, all parties understood that the building would be managed by its owner and not by a third party management company. As a result, the lease called for the Company to pay for the cost to manage the building as a part of operating expenses. CMG's Group Member discovered that the landlord had been billing the Company for all costs to manage the building plus a management fee.

CMG's Group Member negotiated a settlement whereby the Company agreed to pay the landlord the market rate for a third party management company, thus reducing the Company’s originally liability by more than 50%. This resulted in savings of $9 million from the date of settlement through the end of the lease term.