You can be sure that those in the commercial real estate business look to lease abstracting as a critical tool for effective and efficient lease management. Lease abstracting is a routine practice of summarizing key details of a lease document. In other words, it’s all about narrowing down the legal mumbo jumbo to a “bullet point” understanding of the lease agreement.
Lease Abstracting Means You Work Smarter, Not Harder
Lease abstracting makes it easier for a CRE professional to present the immediate expectations of a lease agreement. This also helps potential tenants to understand exactly what is expected of them. While the general bullet points mostly reflect lease pricing, payments, and property management issues and responsibilities, it’s always a more effective choice to keep it simple. With a glance, a lease manager can more easily absorb what is expected and when in regard to the occupancy of a leased commercial building.
Lease Abstracting Means Less Confusion
Let’s face it. Lease agreements are generally packed with pages of details when, in fact, an agreement typically comes down to a few key factors. Lease abstraction is a big benefit to property managers because it provides the lessor with a clear and concise understanding of the lease agreement and terms.
In turn, this means that a property owner or manager is more able to make informed decisions based on current market trends as well as negotiating new leases or renewals. These details become even more critical if a property owner is managing several lease agreements at once.
Lease Abstracting Saves Time and Money
The old saying “time equals money” is especially relevant in the commercial real estate industry. Lease abstracting allows for both managers and staff to quickly absorb data and details without having to sift through the many pages of the lease agreement.
This also comes in handy if there is any litigation or a contractual disagreement. With an abstracted lease document, an attorney can more capably understand the centralized details of a lease agreement. This means less work for that attorney, and less work means less billing time across the board.
Lease Abstracting and Your Money Team
Lease abstracts also help those on your finance team to process what is needed on their end. This is especially relevant when it comes to audits or any other financial processes which could include mergers, acquisitions or portfolio sales. When a company or property manager has access to streamlined or abstracted information it helps to expedite the financial process and reduce the likelihood of mistakes or oversight.
Lease Abstraction is Your Win-Win
We live in a day when the creation of a simple law can eat up 14,000 actual pages. How can one even begin to know where to start when it comes to legal documents? The same issue applies to those who manage commercial properties.
Hefty documentation is needed for a variety of reasons. That’s why lease abstracting is a win-win to your lease management world. It’s just another way for you and your management team to keep it smart, keep it simple, and keep it all moving forward.