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Welcome to

Facing the Challenges of Lease Administration

Today and in the Future

Facing the Challenges of Lease Administration Today and in the Future

Kelly Kepley | Vice President, Lease Services, CoStar Group

Facing the Challenges of

Lease Administration

Today and in the Future

Kelly KepleyVice President, Lease Services

CoStar Group



Kelly Kepley is celebrating her 29th year in the

Commercial Real Estate industry. Her professional

focus in the areas of asset management, lease

administration and industry technology has provided

her a vast understanding of the industry, and she is

considered a subject matter expert in her field.

Ms. Kepley is the Vice President of Lease Services at CoStar Real Estate Manager, where

she oversees the project coordination of teams of attorneys, paralegals, and real estate

professionals assigned to perform data abstraction, data analysis, document management,

due diligence assistance and data auditing services for numerous global retail, corporate and

industrial clients.

Personal Bio



How Lease Administration evolved• Technology

• Moving from paper to reporting

• REIT’s

• Massive Lease holds

• Faster paced due diligence

• National Portfolios

• Tenant’s expanding Lease holds

• Complex financial terms

• Unique skillset required

• Legal, Finance, Leasing, Real Estate, Facilities

The Creation of Lease Administration



• Document Management

• Lease Abstraction

• Lease Interpretation

• Payment processing

• Rent escalations - CPI/FMV

• Desk top auditing

• Percentage rent calculations

• Repairs and maintenance

• SNDA and Estoppel preparation

• Monitor occupancy and co-tenancy

Today’s Common Lease Administration Tasks



• No consistent processes

• No systems or too many systems

• Going global

• New lease accounting requirements

• Training

• Resource constrained

• No corporate recognition

Today’s Challenges



What are some of your challenges? ( Will be conducted

from GoToWebinar )

• No consistent processes

• No systems or too many systems

• Going global

• New lease accounting requirements

• Training

• Resource constrained

• No corporate recognition

Poll…



Create a process review team

• Include other divisions

List out each process under review

• Document management

• Data management

• Quality control

• Payments

Evaluate for redundancy and gaps

• Challenge the current process

• Ask “Why”

• Ask “How”

No Consistent Process



Document the workflow for each process

• Leverage compliance (Sarbanes Oxley)

• Include instructions for tasks

Train

• Record/video sessions

• Convert workflows and instructions into training material

Continued Assessment

• Setup quarterly/Semi Annual process review

No Consistent Process



• Create a review team

• Include other divisions

• List out all applicable systems

• Lease data

• Financial data

• Project management (Construction)

• Work orders (Facilities)

• Document repository

• EXCEL

• Data Warehouse

• Evaluate for redundancy

• Identify the system(s) of record

• Engage vendors for updates, training, new functionality

• Ensure technology is current and advancing

• Continued Assessment

• Track system renewals

Choosing Systems



Translation Services

• Full Lease Translation

• Ensure the vendor has real estate knowledge

• Network with other companies for recommendations

• Leverage the Broker

• Template Translation

• Identify critical lease information required (with Format)

• Train the data provider

• Require LOI in English

Meet the Provider

• Skype/Video Conference

• Ongoing communication

Going Global



Non-real estate leases

• Creating an Inventory

• Understanding critical Data requirements

• Data collection and input

Additional Data requirements – Real Estate

• Option details

• Direct costs

• Rent escalations

Process changes

• Project plan for timing

• Implementation and training

New Lease Accounting Requirements



Subject Matter Expert

• Process workflows

• Systems

Detailed documentation

• Webinars

• Video’s

Scheduled Lunch and Learn events

Networking

• NRTA

• BOMA

• Vendors and Service Providers

Training



Prove your value to the organization!

• Desk top audit savings

• Successful date management

• Detailed job descriptions and required skills

• Samples of complex Lease terms

• Corporate financial reporting

• Scary Stories!

Resource Constrained | No Corporate Recognition



• In store E-commerce

• Virtual office

• Machine learning technology

• Outsourcing

• ASC 842

The Future Challenges…

Questions

Kelly Kepley | Vice President, Lease Services | CoStar Group |

[email protected]

Thank you for attending

Facing the Challenges of

Lease Administration

Today and in the FutureTo Conclude….

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facing the challenges of lease administration today and in ...€¦ · facing the challenges of...

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