Lease Audit/Analysis Federal Appraisal provides expert lease audit and lease analysis services. Commercial real estate leases are often very complex.  They often include unspecified rent and expenses beyond the base rent.  These include rent escalation clauses, operating expense passthroughs, real estate tax passthroughs, common area charges (CAM), electricity charges, other utilities charges, insurance charges and many others.  These rents and passthrough could have any number of methods of calculation, including a net passthrough, a pro rate share, a specified (non-pro rata) share, and the methods can change from year to year. They can have minimums and maximums and they can be based on changes over a base amount or index.  Even base rent calculations are often complicated, with periodic base rent adjustments such as steps, CPIs, and mark-to-market clauses. Analyzing leases is thus, difficult for the inexperienced.  Since lease payments can equal the market (sales) value of the real estate in as short as seven years, the consequences of not auditing a longer term commercial real estate lease can result in substantial losses. Services to Tenants Leased Fee or Leasehold Appraisal Federal Appraisal LLC provides appraisals of any type of lease interest, leased fee or leasehold interests, for any accounting or legal reasons. Lease Audit Lease audits examine the payments requested by landlords to determine their appropriateness.   Lease audits help identify errors and recover overcharges. Our process includes the analysis of the lease, the landlord's payment requests, the landlord's records to the extent permitted by the lease.  It can include a results presentation to and negotiations with the landlord to recover overcharges.   Lease Analysis Since the sum of the lease payments over a term of about seven to ten years can equal the market (sales) value of the real estate and since lease payments are often so complicated, all negotiations for longer term leases should be conducted with the counsel of expert real estate analysts, such as those at Federal Appraisal LLC.  We can provide buy/rent decision analysis, lease to lease cash equivalence comparisons, and other due diligence support and reporting. Services to Landlords Lease Audit Lease audits examine the payments requested by landlords to determine their appropriateness.   Lease audits help identify errors and recover undercharges. Our process includes the analysis of the lease, the landlord's payment requests, and the landlord's records.  It can include a results presentation to and negotiations with the tenants to justify the charges. Lease Analysis Since the sum of the lease payments over a term of about seven to ten years can equal the market (sales) value of the real estate and since lease payments are often so complicated, all negotiations for longer term leases should be conducted by expert real estate analysts, such as those at Federal Appraisal LLC.  We can provide buy/rent decision analysis, lease to lease cash equivalence comparisons, and other due diligence support and reporting. Services to Buyers and Sellers - Due Diligence We also provide and/or certify rent rolls, lease cash flow projections, and net present value calculations of lease income.

Federal Appraisal advises on Acquisition and/or Disposition Due Diligence Buying property is often the largest purchase for private citizens.  Buying and selling property is often the largest financial endeavor of larger entities and governments, as well.  Federal Appraisal provides Acquisition and/or Disposition Due Diligence valuation services to our client to ensure optimal outcomes.  In addition to market value appraisals, we provide offering price valuations, negotiated price valuations, and low/high risk price valuations.  We also provide fairness opinions, feasibility studies, and market studies.

Corporate Real Estate Each corporation has its own unique business requirements. That’s why Federal Appraisal, LLC was formed. Many of the appraisal and consulting needs of corporations can only be solved with complex and non-traditional appraisal and consulting services. Federal Appraisal specializes in those services. We understand that each investor requires different analyses and reporting. We tailor each of our engagements to the needs of the individual corporation and to those investing in the corporation. Our services to corporations include: Business Appraisal / ValuationGoing ConcernGood Will & IntangiblesMark to MarketLiquidation Damages and Lost Income Small and Mid-Sized Corporations and Businesses Site selection Acquisition and disposition due diligence services and support Transaction assistance Executive Summary reports and other report formats Lease Auditing and Analyses, net lease analyses Market reviews and real estate research Financial and sensitivity modeling Portfolio reviews Fairness Opinions and Comfort Letters International transaction/multi-lingual capabilities Management information systems and technology applications IRS and State Tax ReportingCost SegregationPurchase Price Allocation Impairment Studies SEC / Investor Reporting Portfolio and single asset appraisals, valuations Portfolio analysis and strategy Real estate department management review Advisor compliance reviews Property manager compliance reviews Market studies and research Feasibility Studies Development analysis Internal and external appraisal reviews Expedited services for time-sensitive projects Property Tax See Business Valuation/Asset Type, Accounting and Legal issues pages, for more information on Federal Appraisal. Management Consulting Issues and Solutions for Corporations & Private Owners Federal Appraisal provides user-defined scopes of services and agreed upon procedures services relating to Corporations & Private Owners. Securities and Exchange Commission (SEC) Federal Appraisal, LLC provides the real estate appraisals and valuation reporting support required by the SEC. See our SEC page for more information. Internal Revenue Service (IRS) Federal Appraisal, LLC provides the real estate appraisals and business valuation reporting support required by the IRS. See our IRS page for more information. Corporate Headquarters and Campuses While a corporate headquarters may entail one large specially built office building, a corporate campus typically comprises multiple buildings or a variety of occupancy types (office, research, manufacturing, processing) at one location that act together as one economic unit in support of the corporation.  They frequently have centralized support, amenities, and other internal functions.  Frequently, headquarters and campuses have sizable buildings and frequently cover dozens sometimes hundreds of acres of land.  They frequently have expensive-to-build special improvements and finishes, and therefore, their cost new can be unusually high.  Consequently, if their highest and best use remains as a headquarters or campus, then their values will likely be high.  Conversely, if the company that developed the headquarters or campus no longer needs it, given the nature of the special purpose improvements, the headquarters or campus may suffer substantial functional and or economic obsolescence. Therein lies the basis of appraisal challenge and of valuation disputes.  Federal Appraisal regularly testifies to its appraisals on these types of issues for corporate headquarters and campuses. Federal Appraisal has appraised dozens of corporate headquarters and campuses in the United States for a variety of purposes and uses. Federal specializes in appraising corporate headquarters or campus that include: Research and development Wet/dry laboratory space Warehouses and manufacturing buildings Office Buildings of all different types Power Plants and Power Plants that serve corporate campuses Excess and surplus land, water frontage, water rights, rights of way and easements

SEC Federal Appraisal LLC can provide any of the real estate appraisals and valuation reporting support required by the Securities and Exchange Commission (SEC), and other investor reporting exercises.   Whether its SEC reporting requirements for compliance with the appropriate accounting, tax, and audit reporting procedures, or it’s a special issue reporting requirement, Federal Appraisal LLC can help.  Mark to Market Appraisals Business Valuations Good Will and Intangibles Currently SEC registrant appraisal requirements are limited, albeit highly important.  However recent FASB actions will increase the appraisal requirements.  Furthermore, public discourse concerning mark-to-market accounting indicate that the role of appraisals in investor disclosure is growing.  Federal Appraisal LLC has been on the cutting edge of this issue, providing technical support to regulators and practitioners.   We understand the needs and desires of both companies and their investors.  We understand the need of companies to control reporting and the associated costs, and to remain, beyond a doubt, in compliance.   We understand investors need for transparency and clarity. Please see our accounting pages,  legal pages,  Business Appraisal / Valuation, and our Property Type pages for more information on the services offered by Federal Appraisal that relate to the SEC.