Lease Administration Services
CBRE is an industry leader in Lease Administration services. We have completed some of the largest real estate abstraction and lease management projects in the business and, when compared with competitors, our quality metrics have been superior. CBRE offers a unique, end-to-end solution for all aspects of lease administration, including the use of our best-in-class proprietary lease administration software system, Sequentra®.
We have been providing these services for 20 years as part of our core business. Many of our clients are Fortune 500 corporations with very large global portfolios. We offer a fully scalable model, and have proven experience servicing large and global portfolios.
Our lease administration services help you reduce the unnecessary risk and cost of inaccurate portfolio information. It has been one of our core business offerings since 1991.
Accurate information for better decisions
Whether your business has 5 or 5000 leased or owned locations, we can help your company. You benefit from:
- High quality data: actionable insight into real estate performance
- Drive savings: with an accurate picture of real estate spend
Global lease administration, locally compliant
Our global lease administration experts ensure that leases and rents are paid accurately and on time for more than 100 corporate clients across the world. We abstract leases in 26 languages, compliant with local and global accounting standards, including SOX, FASB and IASB. Through lease desktop audits, we reduce bill-payment errors to an absolute minimum. On average, 50% of our lease administration fees are recovered in savings.
120 dedicated lease admin experts 100% focused on corporate occupier needs.
We operate onsite with our clients and provide support from 3 regional centers of excellence located in North America, EMEA, and Asia Pacific
For many clients, we have successfully provided lease administration for more than 10 years
- Approximately 20,000 properties managed globally
- We have successfully managed the world's largest abstraction project: 40,000 leases
- Innovation: We have won multiple awards including a CoreNet Global Innovators Award for our forward thinking and savings for clients
- $1.6M savings though a standard desktop lease audit for a global manufacturing company
- Our lease administrator suspected incorrect calculations of 2010 Real Estate Tax estimates due to a change in base year stated in 2009 Amendment. After conducting the desktop audit and confirming with the landlord , our client benefited from $60K direct cost recovery due to overpayments of Real Estate Tax estimates from 1/10 - 3/10 and $1.54M minimum cost avoidance calculated through life of term.
- Prevented a $74.5M error for a global technology company
- Before partnering with CBRE our client had documented monthly rent equal to 616.83 EUR per SM (1,330 SM) in one of their many leases. That would have been 820,383.90 EUR per month through expiration which is 6/22/18. The client had entered this into their forecasting reports. When the CBRE lease administrator received a copy of the invoice and reviewed the lease, it was found that it was not a monthly rate but annual rate! The client corrected their records and the Sequentra lease management system was correctly updated. The total overstatement in reporting and forecasting was $74.5M USD.
Cost effective solution supporting 26 languages in-house
First we go through a thorough discovery stage where we establish your custom lease abstractions guidelines. These guidelines would include CBRE standard best practices, client specific 'primary list' of lease clauses which are critical to document, including indicating if the lease is silent for any of those clauses. You have the opportunity to identify a secondary list of lease clauses, or any combination which best serves your data management goals.
We will identify the following key data in lease documents:
- Key dates such as commencement, expiration, option effective and notification dates
- Rent related data including recurring payments. (e.g., rent, operating expenses/CAM charges) and one-time payments. (e.g. security deposits, pre-paid rents)
- Key lease clauses as identified in industry standard best practices Abstraction Guidelines.
- Input abstracted data into Sequentra® or into client's information management system
Bulk lease abstraction projects to provide consistent high quality data for your entire real estate portfolio
Our team of foreign language lease abstractors available to abstract 26 lease languages into English. This offering is unique to our company through our Global Workplace Knowledge Centers in Manila, Philippines and Bratislava, Slovakia.
Full Service Lease Audit
- Maximize recoveries
- Preserve landlord relationships
- Full client visibility
The Right Experience: Highly qualified, experienced talent pool ensures that savings will be maximized. Significant savings on a given audit are often derived by digging deep into the records, backup, and allocations made, but also by recognizing where certain credits and calculations are absent.
CBRE has other tenant-only focused practice areas which support Lease Audit such as Energy & Sustainability, Construction, Facility Management, Lease Administration and Brokerage.
The combination of our experiences and knowledgeable lease auditors who are supported by CBRE's other practice areas ensures an unmatched level of sophistication and due diligence.
- Tenant-only - no landlord conflict of interest
System Implementation and Data Migration
Sequentra® has successfully migrated clients from a large variety of available systems. Based on quality of data and our client's business priorities, the Sequentra® implementation expert will create a plan to get the data on to our best-in-class system and fully mobilized.
Our experienced and knowledgeable account managers also document current state process, and identify areas for improvement and increased efficiency, prior to going live with Sequentra®.