Once your commercial property attracts the right kind of tenants, your next step is to move into one of the most important phases of the commercial lifecycle: abiding by the leases you signed.
Property and asset managers are challenged to execute against the lease terms and understand the impact of the lease information on the broader portfolio, which makes accessing and managing lease data a vital aspect of your business. Maximizing your commercial property leases by getting the right data to the right people in an efficient manner can go a long way in bolstering your portfolio.
Structure the information in the lease digitally
To gain actionable insights from leases, the first step is to digitize the information. If property managers and other users have difficulty accessing lease information, or if the data contains errors, then how can they perform their jobs properly? The lease drives daily activities, and so the data from the lease must flow to the correct users. You need to be able to extract clauses and other data points from the lease, exposing the lease information to appropriate members of the organization. Lease abstraction can be performed in a variety of ways, from using in-house teams to choosing to outsource this activity. Recently, the application of artificial intelligence (AI) for lease abstraction has delivered greater efficiency and accuracy for this process, and it enables users to easily link directly to source documents.
If there are any updates on the lease along the way, the last thing you want to do is staple an addendum to the lease and file it away. Often, cumbersome, manual processes are how companies attempt to guarantee that the right people will be notified. Keeping your lease information updated digitally and making sure everyone in your organization is pulling from a centralized database will mitigate the risk of errors down the line.
Mine information in your enterprise data
Making sure that easy access to lease data is available across your organization is only the first step of the process. Only 20% of enterprise data can be found in structured data like leases and contracts. How can your users get their hands on the other 80% of enterprise data – unstructured data in the form of images, audio files, word processing documents, and emails – that help them do their job?
Missing critical information found in unstructured data can cause problems in future operations, but with MRI @Work, your organization can move unstructured data into a central hub that all relevant users can access. Making unstructured data accessible can help you get the right information from both the lease and extemporaneous sources to the members of your organization who need it.
When structuring deals, the right data can shed some light on which decisions will benefit your portfolio the most. For example: If you are giving a tenant two months free rent, how does that impact the deal? If there is a co-tenancy in place and the main retailer shuts down, what is the impact on the other lessees?
Never forget a key term or miss a critical date
MRI @Work provides you with data visualization tools to keep your business efforts organized and focused in the right direction. Along with configurable reporting capabilities, these tools deliver personalized information to the end user in a way that shows only the data they need. With detailed dashboards, users can view accurate, at-a-glance information or dig deep into the data to find all the points they’ll need to do their jobs effectively.
Additionally, the automation found in MRI @Work reduces the role that human error plays in lease abstraction and data management, making it easier for the end user to trust the information that ends up on their desks.
Getting your enterprise data where it needs to go only benefits your commercial property business if that data is visible and actionable – can your team actually keep up with key terms and critical dates based on all the resources you’ve pulled together? Missing key terms can have a negative financial impact on your portfolio as well. Some forward-thinking organizations have begun to utilize AI to audit their existing lease data and have discovered significant under-billings and missing recoveries charges because of inaccurate or inaccessible data.
MRI @Work enables property and asset managers to utilize the important data found in leases faster and with more accuracy. By maximizing the lease, the end user can make more informed business decisions and act upon the information that serves as the lifeblood of the business. Learn more about MRI @Work in this webinar.