No matter the size of a portfolio, one common misconception persists…that lease abstraction is an easy task. On behalf of every real estate accountant and lease specialist who has toiled in and around an abstraction assignment, Eximius BPO is here to confirm…performing an abstraction assignment is a demanding undertaking.
Abstracting a lease portfolio is a very complex, time-consuming task. Its duration depends on the size and requirements of the project, and—as many team administrator managers will attest—can nearly paralyze a company’s in-house lease administration team’s commitments.
Accurately summarizing paragraphs of information to communicate critical points takes time. When used as a tool, the abstract adds value to a company’s informational arsenal by giving it the ability to analyze, compare, and report key information across its portfolio.
There are a number of pitfalls to expect when embarking on a lease abstract project. In today’s ever-changing commercial real estate environment, the lease abstract must be designed to meet a company’s needs, both today and in the future. As an example, recent rules now require information from Sarbanes-Oxley, and new GAAP rent mandates need to be considered when preparing abstracting renewal options. Information concerning possession dates and buildout have become important data to capture.
As an experienced lease abstraction services resource, Eximius BPO understands that there is a direct relationship between the amount of information a company captures in its abstract and the cost to populate and maintain it on an ongoing basis. Done well, an abstract process can help reduce expenses going forward by including detailed lease audit information that, in turn, can support an aggressive lease audit program. And this, in turn, can reduce the cost of future abstraction assignments.
Choosing a lease abstraction services company is the most critical decision to make in the abstract process. Some companies utilize legal temps or people with little commercial real estate experience to abstract their leases. Eximius is highly regarded for hosting well trained and tested teams of abstract specialists. In fact, many Eximius clients choose to maintain the same Eximius team as their own virtual staff.