I’ve sat in countless boardrooms with executives who are laser-focused on rent. They negotiate the base rate down to the penny, celebrate the “deal,” and move on.
But here’s the truth: rent is only part of the story.
The silent killer for many companies isn’t the rent itself—it’s the operating expenses.
Operating expenses—things like property taxes, insurance, utilities, repairs, and maintenance—don’t grab headlines. They sit quietly in the fine print of your lease and show up as monthly charges that rarely get challenged.
The problem? These costs often grow faster than expected. Over time, they can erode margins, throw off budgets, and create financial surprises that make your “great lease deal” a lot more expensive than you thought.
I’ve seen companies sign leases thinking they had predictability, only to find out later they’re covering capital improvements for the landlord, paying above-market management fees, or absorbing costs that should have been excluded. Individually, these might look like small numbers. Together, they can represent hundreds of thousands—sometimes millions—over the life of a lease.
Executives are busy running businesses. Very few have the time or desire to comb through a 100-page lease or compare historical expense statements line by line. Landlords know this, and that’s why operating expense clauses are rarely written in plain English.
It’s not that landlords are doing anything shifty—the system is simply designed to protect their interests unless you push back. And if no one’s watching closely, those small “standard” clauses quietly tip the scales.
The good news is this doesn’t have to happen. With the right strategy, you can take control of operating expenses before they drain your bottom line. Here are three practical steps:
These aren’t theoretical ideas. These are strategies we’ve used with Fortune 500 companies, high-growth startups, and everything in between. The result? Millions of dollars saved simply by shining a light on overlooked expenses.
Here’s what I want every executive to understand: real estate is rarely just about the rent. It’s about the total cost of occupancy—and operating expenses are a huge piece of that equation.
If you only focus on the base rent, you’re only focused on part of the story. But if you broaden your view, challenge the fine print, and hold landlords accountable, you create meaningful savings and protect your company’s profitability long-term.
That’s what great real estate strategy looks like—not just chasing the lowest rent, but uncovering the hidden costs that quietly drain your bottom line.