Whether you are a small business tenant, large office tenant, or retail chain with large real estate portfolios, typically represent one of the top cost-centers a CFO must fret about.  Not surprisingly, therefore, new leases receive the full attention they deserve at the time they are signed. When a new lease is confirmed, organizations diligently get it abstracted and entered into their lease portfolio management systems.

However, more often than not, that lease remains in abstraction form until termination or renewal comes up.  The reality of today puts greater importance on capital intensity while lacking in staff authenticity and responsibility.  Organizations tend to treat lease management in an inconsistent manner.  These bad habits can result in significant economic losses.  With that in mind, lease administration specialists must adhere to a golden rule: you need to remember that consistent on-going lease management is vital to the success of a business.

One important reason why a tenant should be reviewing a lease portfolio is to identify any inconsistencies in CAM expense billing, rent hikes and other operating expenses that the landlord may be imposing.  It is easy to fall behind or lose track of lease updates.  Notice periods for termination, renewal, expansion and the right of first refusal are put in jeopardy.  Executing options at the right time can be monumental in aiding the tenant to get a good deal on the existing leases.

Overlooking these updates can cause detrimental capital losses to a tenant.


NRTA is proudly collaborating with two seasoned professionals—Lisa Krizek and Kathy Powers-Middlecoop—to present a four-part real estate management course.

This comprehensive course provides the real estate student with an in-depth understanding of lease administration and the role of the Lease Administrator.  The session covers all aspects of lease administration, from the receipt of a new lease, through expirations and renewals, to property turnover. Participants will gain a thorough understanding of how lease administration plays a key role in the success of an organization in today’s world.