Understanding its impact on operations, compliance, financial reporting, and the value of leased assets.
Managing Complex and Expansive Real Estate Database
Given the flexibility and cost benefits, leasing has been a go-to strategy for businesses across industry sectors. However, until recently, lease management was never a priority and was largely restricted to renewals and paying/recovering rents on time. But with the introduction of the new lease accounting standards (ASC 842 and IFRS 16), the focus on lease management has changed. Today, lease management is no more an area of focus for the real estate sector only. Its influence on the bottom line, compliance, and financial reporting has led to an increasing demand for effective lease management. Organizations are vying with each other to streamline their lease management practices to ensure smooth business operations, accurate financial reporting, and timely compliance. And the statistics bear this out: the lease management market is expected to grow at the rate of CAGR 6.7 percent from 2019 to 2027 while predicted revenue is estimated to cross $6 billion by 2027.
While it is evident that lease management services are in great demand, the shifting leasing landscape and its requirements pose complex and multifaceted challenges. Factors such as complying with demanding financial reporting requirements, the volume and complexity of lease portfolios, time and data management, and optimizing operating cost while maximizing revenue streams are making it difficult for organizations to efficiently manage lease portfolios in-house. Seeing as how lease management goes beyond improving operational efficiency and helps drive greater business value overall, now, more than ever, organizations across sectors are looking to adopt a collaborative approach to fully equip themselves to carry on lease operations into the next normal.
Download our white paper to learn the emerging trends that are driving up the need for superior lease management practices and the influence of effective lease management on operations, compliance, financial reporting, and the value of leased assets.