The commercial real estate industry is slowly gaining its strength back. As per a recent survey, 55% of commercial tenants are looking at prioritizing long-term leases (5years and more), while 65% of landlords are expecting their tenants to demand additional space.
As the commercial real estate sector prepares for recovery and expansion, both tenants and landlords are focusing on building the right team, resources, and creating relevant strategies that can help them navigate these unique market circumstances. While there are positive signs of growth, uncertainty still looms large. Plus, every new lease would be impacted by the new lease accounting standards (ASC 842, GASB 87, and IRFS 16), and the recently modified ASU 2021-05 issued by FASB that affects the way lessors account for leases.
Managing the overwhelming requirements
It is most certainly an overwhelming time for commercial industry players who need to meticulously plan, determine business goals, strategize, and operationalize their activities, with the end goal of maximizing the value of leases.
It is obvious that adapting to such a dynamic market demands a multi-pronged strategy and approach. And to be able to do that, companies need to have access to the right, accurate, and timely lease data at every step of the way to make informed choices and decisions.
Realizing that lease abstraction is at the core of every process
Lease abstraction has emerged to be a critical document, especially within the commercial real estate sector. There has been a steady rise in demand for both lease abstraction software and lease abstraction outsourcing services and for good reason.
Apart from the obvious advantage of having quick and easy access to critical lease data, lease abstraction is now critical for companies to be able to comply with the new lease accounting standards. In addition to this, accurate and professional lease abstracts integrate easily with any lease data management system, making it easy to store, manage, and access data for every other business process.
Managing lease updates near real-time
Another very important area that lease abstraction focuses on is near real-time update of lease data, this allows companies to seamlessly access relevant lease information needed to respond to and act on any external or internal trends/circumstances/events.
And it is worth reemphasizing that access to current and accurate lease data in a user-friendly and easily comprehensible format powers better-informed business decisions, helping you derive optimum value out of the lease portfolios. Having comprehensive visibility into lease information also equips companies to manage to account and lease operations with ease.
At Springbord we have been helping companies manage their lease portfolio efficiently, minimize risk, ensure compliance, integrate data with other platforms, and improve overall lease data management through timely and accurate lease abstraction services. To know more about our Lease abstraction services, connect with us today!