Lease Audit Information

TOPIC OF THE WEEK:

Covington Square Associates, LLC v. Ingles Markets, Inc. (83 Ga App. 307, 641 S.E.2d 266)

In this case, the court found that the tenant was not responsible for security guard costs due to the fact that security was not specifically listed as a common area cost in the lease. "Common Area Costs" were defined in the lease as the costs and expenses incurred by Landlord in the "operation and maintenance" of the Shopping Center and the Common Areas. The definition then itemized several CAM costs, but did not include "security". Therefore, it can be implied that "security" is not a part of "operating and maintaining" a shopping center or common areas, unless it is specifically negotiated in the lease.

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