Reconciling year-end operating expense escalations and justifying calculations to tenants and auditors can be a daunting task for property managers, accountants and asset managers. Depending on your lease structure, escalations can represent between 10 to 40% of an office building's revenues, so your building’s profitability can depend on escalation recoveries.

Experts Bill Brownfield, CRE, CCIM, and Larry Mayerhofer, CPA, Principals of Brownfield and Mayerhofer and authors of BOMA's longstanding publication The Escalation Handbook for Office Buildings, have a plan to help you with your escalations and promise to clear up confusion about the escalation process.

Seminar Objectives
  • Learn why is grossing up is fair for both tenants and landlords.
  • Learn the difference between the two different gross up methodologies: Total Cost Approach and Percentage Approach.
  • Find out which expenses are escalatable and which are not.
  • Learn how capital amortizations create a Base Year Inflation and can harm the landlord's economics.
  • Discover how to handle expense caps.
  • Determine what percentage of your building's expenses are actually recovered.
Seminar Information
Date Presented:
February 08, 2018 1:00 PM Eastern
1 hour
BOMA Member Price:
Non-Member Price:
Ready to Reconcile Escalations?

William H. Brownfield is a Counselor of Real Estate (CRE) and a Certified Commercial Investment Member (CCIM). Between 1981 and 2003, Bill was responsible for management activities of more than 28 million square feet of office properties in markets across the United States. Since 2003, he has been involved in the acquisition and disposition of properties with an aggregate value of approximately one billion dollars.

Bill has served as the 2005 chair of the Counselors of Real Estate, Houston/Gulf Coast Chapter and as a past board member of Houston’s CCIM and IREM chapters. A recognized expert in several disciplines of commercial and investment real estate, Bill is also a Texas broker and assists buyers and sellers of privately owned real-estate and serves as a partner in Brownfield & Mayerhofer. He is the author of the Escalation Handbook for Office Buildings, published by BOMA International.


Lawrence M. Mayerhofer is a Certified Public Accountant with more than 25 years of real-estate accounting experience. Larry co-founded Brownfield & Mayerhofer in 1998. During a 23-year period with Equity Office Properties Trust, he served as Vice President of Property Accounting, where his responsibilities included managing the escalation process for more than 12,000 tenants, 14,000 leases, and about 100 escalation audits annually.

An accomplished leader in creating escalation standards, Larry led the design team in the creation of the ARGUS Office Escalations software (formerly known as BOMA’s Escalation System for Office Buildings) and provides support for product users in the United States and abroad. Larry also provides accounting consulting services to a national real estate owner and operator. Along with Bill, Larry is the co-author of the newest update of the Escalation Handbook for Office Buildings, soon to be published in by BOMA International.

Individual topic purchase: Selected
BOMI International
Continuing Professional Development Credit: 1.00
BOMA Member Price:$39.00
Non-Member Price:$39.00