Stop loss and ensure better retail-landlord relationship
Managing Complex and Expansive Real Estate Database
With the retail sector having plunged into recession due to the COVID-19 pandemic, all players are looking for ways to cut their costs and survive the crisis. This has had a ripple effect on the commercial real estate sector. According to a survey, only 75 percent of retailers paid rent in the month of June 2020, even as most others are increasingly trying to link rent with store revenues. This a unique situation where even though rent revenue has been severely impacted, retail landlords are still required to provide some form of relief to aid the recovery process. At an unprecedented time such as this, optimizing operational cost and efficiency is indispensable. To manage the intensifying cost pressures, retail landlords need to maximize recovery through efficient CAM reconciliation—which makes up for 30 percent of the gross revenue for commercial real estate companies.
Considering the fact that timely and accurate CAM reconciliation is key to maximizing cash flow and maintaining financial stability, retail landlords need to consider outsourcing this service, which, in turn, promises to deliver both cost and tactical advantages. Collaborating with a specialized service provider can result in substantial savings on cost as well as time, enhance operational efficiency, maximize recovery, and allow in-house resources to better focus on strategic initiatives.
Download our white paper to learn how retail landlords incur thousands of dollars in losses due to a faulty CAM reconciliation process year after year and how outsourcing the same can help stop the losses and drive profitable outcomes.