Lease Audit Information
TOPIC OF THE WEEK:
K's Merchandise Mart v. Northgate
Limited Partnership (359 Ill.App.3d 1137, 835 N.E.2d 965,
296 Ill.Dec. 612):
Yet another case in which a court found that the tenant had
no obligation to pay a management fee. Although K's was
required to pay its pro-rata share of operating expenses
(including operation, maintenance, repair, replacement,
policing and protecting and lighting of the common areas),
the court concluded "that a management fee is not an expense
involved in the direct operation of the shopping center".
An interesting part of this case involves the
discussion of the fact that the leases of all the other
tenants in the center contained an express provision for the
payment of management fees.