For entities with commercial real estate leases in place or in development, it’s important to have an efficient, streamlined, and scalable lease administration process. Effective lease administration processes can result in reduced legal exposure, smoother operations, and significant cost savings.
On its face, administration is simply about collecting and/or paying rent, and ensuring the obligations spelled out in the lease itself are met. However, an effective lease administration process is more complex. While every organization’s needs differ somewhat, the steps involved in the administration process typically include:
- Lease abstraction, to summarize key lease terms and obligations. This can help companies stay on top of expirations, notice requirements, and other metrics.
- Analyzing lease expenditures – including operating costs, CAM expenses, property taxes and utilities – and taking action to adjust those expenditures where possible and appropriate.
- Managing key dates and lease options proactively, to allow for enough time to make critical decisions.
- Managing and monitoring payment terms to ensure rental payments are made/received when due.
- Facilitating, receiving, and responding to requests for tenant alterations to leased space.
- Administering and executing amendments to existing leases.
- Reporting on key terms, provisions, and performance of leases.
- Ensuring corporate governance compliance with Sarbanes-Oxley and GAAP requirements.
- Evaluating and auditing the lease portfolio to identify potential issues.
Successful lease administration is about more than just each of these functions individually. When taken as a whole, lease administration can help you use information on commercial real estate more effectively, since it is a key component of the forecasting and budgeting process.
Efficient administration processes ensure dates and deliverables are managed. And, by having experienced lease administration professionals working behind the scenes, you can minimize the potential for errors in the invoicing, billing, and collection processes too.
There are many benefits for outsourcing the lease administration process on your portfolio of commercial leases. To find out how Baer Reed can help, contact us online, or call us at (888) 433-1990 today.
Mr. Reyes graduated with honors from the Ateneo de Manila University, where he received the Procter and Gamble Student Excellence Award. He obtained his Juris Doctor degree from the Ateneo de Manila School of Law. During law school, Mr. Reyes was part of the Philippine delegation to the Willem C. Vis International Commercial Arbitration Moot held in Vienna, Austria. He was also a member of the Ateneo Society of International Law and the St. Thomas More Debate Society. He completed his internship at the Public Attorney’s Office. He wrote a thesis entitled: “To Kill A White Elephant: An Analysis of the Fiduciary Exception to the Corporate Attorney-Client Privilege”. Mr. Reyes is admitted to practice law in the Philippines and the State of New York.
Ms. Lardizabal-Manzano is a graduate of San Sebastian College-Recoletos, where she earned her B.A. in Political Science. In 2003, she received her law degree from Lyceum of the Philippines and was admitted to practice law in 2004.
Matthew Hersh earned a B.A. in Political Science from Columbia University in 1990 and graduated cum laude from Georgetown University Law Center in 1999. He also holds a master’s degree in international relations from the Georgetown University School of Foreign Service.
Cap. Avi Levak (Res. IDF) graduated from from Israel’s prestigious Ben-Gurion University of the Negev with a Bachelor of Science in Computer Science and Mathematics. He is also a Leadership and Communication coach trained in TuT coaching by Alon gal in Israel. Avi specializes in high-level, in-depth analysis of business and client needs, within systems and software strategy and architecture.
Ms. Tyler graduated cum laude from Georgetown University and received her law degree, cum laude, from Georgetown University Law Center. During law school, she interned at the United Nations Economic Commission for Europe. She also worked on The Tax Lawyer journal and was a member of the award-winning Barristers’ Council Mock Trial Team. Ms. Tyler is admitted to practice law in the State of California and the District of Columbia.
Ms. Cruz-Anonuevo graduated cum laude and top nine in her batch from Miriam College with a degree of Bachelor of Arts in InternationalStudies. She obtained her Juris Doctor degree from Ateneo de Manila University School of Law in Rockwell. During law school, she interned in Rivera, Santos, Maranan & Associates. She was also part of Ateneo’s Labor Law Bar Operations. She wrote her thesis on, “Stealing Privacy: Limitations on Media’s Photographic Invasion.,” Ms. Cruz-Anonuevo is admitted to practice law in the Philippines.
Ms. Aquino-Batallones obtained a Bachelor of Arts degree in Development Studies (with Minors in Global Politics and Hispanic Studies) from the Ateneo de Manila University. In 2011, she received her Juris Doctor degree from Ateneo de Manila University School of Law. During law school, she interned at Romulo Mabanta Buenaventura Sayoc & de los Angeles then became an intern of Ateneo Legal Services Center’s Clinical Legal Education Program.
Mr. De Guzman graduated from San Beda College with a degree of Bachelor of Arts Major in Economics and received his law degree from San Beda College of Law. He is multilingual and is fluent in three languages: Chinese, Filipino, and English. He was admitted to the Philippine Bar in 2003.