NAI Estate Fellows conducts audits of operating costs in commercial real estate

Marta Wróbel 3 March 2021

Audit is a useful and extremely effective control tool used to improve the company’s operations. It is also a technique often used on the real estate market, allowing the verification of the legal, technical and financial condition of real estate. At NAI Estate Fellows, audits are carried out by qualified financial experts with great experience in the real estate industry.

Financial audit is one of the tools helpful in assessing the correctness of cost allocation and the profitability of investments. Using this method, it is possible to make a favorable business decision, choosing the most effective and, at the same time, the most economical option.

The purpose of conducting such an audit is to analyze the costs incurred by the company, e.g. for property maintenance, and to verify their legitimacy, as well as compliance with the established budget. In addition, this process allows the detection of possible irregularities in financial management and the development of corrective actions in this regard. It is a useful tool in optimizing your rental policy and property management.

Due diligence in general is subjecting an enterprise to an exhaustive analysis in terms of its commercial, financial, legal and tax condition. Such audit is aimed at assessing the current situation of the property and determining the existing and potential risks associated with the planned capital transaction, which may be, for example, the purchase of a building.

Due diligence analysis should ensure identification and estimation of the risk related to the future investment, determination of the specificity of concluded contracts, including the cost structure, market, suppliers and recipients, development of a negotiation strategy with the contractor, and increasing the chances of a successful transaction.

Financial due diligence, i.e. a detailed audit of the operating costs of the Atrium International Business Center building, conducted by financial experts from NAI Estate Fellows in 2019, helped the investor in making the decision to buy the office building.