More than one way to peel an orange : A fresh approach to building an effective lease administration function

Abstract

This paper explores the evolving landscape of lease administration, prompted by shifts in labour markets, growing complexities of financial reporting for lease agreements and the emergence of robust lease management technology. Lease administration emerges as a critical business function, with a focus on managing lease data, ensuring accurate rent payments and navigating compliance and landlord relationships, while providing realtime reporting capability for business stakeholders. In addition, lease administrators transition from labour-intensive manual processes to a more analytical and technical approach. Given the altered environment in lease management requirements, tools and skill sets, now is an ideal juncture for companies to assess their current lease administration operating model, and the paper introduces a perfect assessment tool. The Lease Administration Framework, a proactive lease administration management system, highlights strategies and decisions for managing a company’s real estate portfolio while considering the use of in-house teams and outsourced service providers. The paper advocates for a tailored approach to be aligned with organisational needs, while emphasising the importance of evaluating talent, technology and risk tolerance in the decision-making process. By following the framework, corporate real estate (CRE) leaders can ensure financial prudence, gain the agility to allocate resources strategically, invest in growth initiatives and weather economic uncertainties.