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SELECTING THE RIGHT SOLUTION

Lease Essentials

Data Management

Data + Rent Management

Lease Administration Service Tiers

2019 | CBRE Portfolio Services

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IDENTIFYING YOUR LEASE ADMINISTRATION NEEDS

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Real estate is one of the largest overheads any business can have. We firmly believe that outsourcing

Lease Administration is a best practice for any company with multiple locations or expectations of growth. With each location having a 50+ page lease

agreement, and likely other documents such as lease commencement date letters, tenant estoppel

certificates, reconciliation statements, lease amendments, etc.; the need for a central repository and assurance that the information has been

reviewed, verified and properly maintained is absolutely critical in today’s marketplace.

Managing your leases is about managing your contractual obligations and rights regarding

considerable line item expenses and represents a core element of business operations. Lease administration

software, tools and processes help mitigate risk, accurately track critical dates, verify expenses, and support an organization in a multitude of other

ways. Accurately tracked and centralized data also delivers powerful analytics which can greatly improve

the performance of a real estate portfolio.

We typically think of obligations as being centered on

paying rent, but there are so many other issues and obligations that need to be proactively monitored –

such as renewal and termination rights, rights of refusal, operating expenses, audit rights, maintenance, repairs, relocation, security deposit and

tenant improvement allowance, to name just a few.

Finally, in lieu of a robust solution, the alternative is usually Excel spreadsheets. These are sufficient for reading reports but are simply not satisfactory when it

comes to managing living, dynamic, changing leasehold lifecycles. When done correctly, Lease

Administration provides powerful strategic insight and is an incredible planning tool – one that delivers real value to an organization and furthers its efforts

around risk management.

Could you produce a single, reliable list of every single location your organization leases or owns? Could this be done quickly?

Can you retrieve any lease document, or other related piece of real estate information for each and every location within the portfolio?

Do you remember every lease expiration, termination right or option? Are you confident that these dates are 100% accurate?

If asked to produce rent projections for the next month, quarter or decade, could you generate that report? Could you do so immediately?

Do you know which leases have rent increases each month/year? Do you understand which locations have pass-through real estate expenses, require tenants to be liable for excess repairs or replacements of capital items?

If your real estate leader, local manager, etc. left the company, could their replacement be in total control on day one?

Who is guaranteeing compliance, ensuring that billings and payments are reflective of the terms stated in the lease?

Well-organized, reliable lease data is the foundation upon which a strong real estate strategy can be built.

CONSIDERATIONS

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WHICH TIER BEST SUITS YOUR NEEDS?

LEASE ESSENTIALS

DATA MANAGEMENT

DATA + RENT MANAGEMENT

Entry level, off-the-shelf, structured lease administration

program that uses industry-leading database and reporting technology to capture essential property and lease data in a consistent and reliable format

Expands on Lease Essentials scope to provide more

comprehensive, customizable management and administration

services for leased and owned real estate properties

Expands on Data Management scope to include the active

management of rents

§ Designed for small-medium sized portfolios (<100 records)

§ Ideal for first generation outsourcing

§ Establishes a reliable source of data and reporting

§ Identify early renewal and consolidation opportunities

§ Mitigate business risk

§ Incorporate industry-leading practices and tools

§ Simplified pricing

§ More flexible database configuration

§ Scalability to handle an aggressive growth strategy

§ Portfolio optimization through identification of strategic opportunities

§ Compliance with ISAE/SOC 1 standard

§ Ensures robust governance and best practices are realized in the management of leases

§ Outsource the management of leased and owned data and the processing/collection of rent

§ Suited to companies focused on reducing portfolio-related costs with stringent review of landlord billings and/or tenant collections, and accurate pass-through charges to tenants.

§ Provides financial services performed in a SOX compliant environment

§ Directly receive and process time-sensitive landlord-related matters as a notice copy to leases

§ Targeted lease audit program to reduce operating expenses

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WHAT IS IN SCOPE?Service Offerings Comparison

LEASE ESSENTIALS

DATAMANAGEMENT

DATA + RENTMANAGEMENT

Best-in-class, cloud-based lease administration technology ü ü ü

Single point-of-contact ü ü ü

Scan lease documents and upload to appropriate record ü ü üAbstract key lease data points into database, including critical dates and recurring charges ü ü ü

Report on missing data/documents ü ü ü

Monthly critical date reports ü ü ü

Powerful analytics dashboards through Portfolio Optimizer ü ü ü

Clause Abstraction ü ü

Customized Playbooks/Process Development ü ü

Custom Reporting available * ü ü

Targeted lease audits where mutually agreed between parties * ü ü

SOC 1 or equivalent compliant processing environment ü üCBRE becomes a notice copy to Client’s leases and receives invoices from landlord ü

Landlord dispute resolution and ongoing vendor maintenance ü

Estoppel and SNDA Review ü

Review landlord billings for mathematical accuracy, lease compliance ü

Variance reports summarizing monthly changes to rent roll üProvide monthly payables export file for upload to client’s accounting system üSublease management including invoicing, expense pass-through billing, aging and delinquency reporting ü

Collect outstanding security deposits ü

Report on Tenant Improvement allowances and associated critical dates ü

* Additional fees may apply 3

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SEQUENTRALease Administration and Portfolio Management Database Solution

Feature rich, real estate management database application designed from the ground up by Real Estate professionals for Real Estate professionals

Allowing users to control, manage and unlock the data within their organization, Sequentra provides the highest quality analysis tools to facilitate informed decision-making and build competitive advantage for CBRE clients

KEY FEATURES:§ Full mmuullttii--llaanngguuaaggee and

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§ Purpose built accompanying mmoobbiillee aappppss

§ Central repository for portfolio-related information

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§ ERP integration

§ SOX Compliant

§ Executive dashboards, automated reporting and notifications

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PORTFOLIO OPTIMIZERPowerful analytics for Lease Administration and Portfolio Management

Benchmark your portfolio and identify savings opportunities

§ Analyzes current portfolio composition

§ Benchmarks against market for cost, space and flexibility

§ Analyzes inputs using decision making logic and market data

§ Estimates implementation costs

Optimization opportunities automatically identified and presented in clean reporting format

§ Identifies, quantifies and prioritizes opportunities

§ Produces portfolio, benchmarking and savings analysis reports

§ Accessible on any PC, smartphone or tablet device via secure login

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