Accurate Data Drives Accurate Lease
Our global client’s decentralized international operations and lack of internal business controls were making their adoption of the new lease accounting standard impossible.
Through a competitive bid / RFP process, Scribcor was engaged to abstract 2,300 of the client’s real estate leases, of which it was later discovered, over 80% had critical document exceptions. Moreover, language translation was necessary for approximately half of the documents from 26 different languages.
Scribcor mobilized a team to evaluate each lease document, identify and resolve the document exceptions, taking the exceptions from 80% to zero, and then abstract the pertinent lease data into the client’s lease administration system.
Scribcor was also awarded the lease abstraction engagement for the equipment lease portfolio of over 10,000 leased equipment assets.
Keeping the Client’s Landlords “On Track” to Reconcile Their CAM Charges
Scribcor has a long-time client that is an information technology company with a large office portfolio.
Landlords typically charge escrow amounts monthly for building operating expenses/CAM and common area maintenance. These figures are based on an estimated budget for the property, often provided at the end of a calendar year. They are expected to be “trued up”, or reconciled, the following calendar year. The problem is that not all landlords provide the backup billing history needed for tenants to accurately reconcile, some landlords provide no reconciliation statement at all. In many situations the expenses come in under budget and tenants are owed a credit. In our experience roughly 25% of landlords do not reconcile unless proactively requested by the tenant.
Scribcor’s client was facing this exact dilemma, and based on the size of its portfolio, the exposure was significant.
Scribcor worked with the client’s database solution to create a ticket tracking system. This system would allow Scribcor to generate a report identifying landlords that had not provided a reconciliation statement by September, for the previous year. Through this process, Scribcor was able to proactively follow up with the landlords that had not reconciled.
By implementing this ticket tracking system, Scribcor saved this client an average of $737K annually over the past several years through the reconciliation process. Since the system has been in practice, roughly 20-30% of the annual savings and the recoveries generated by Scribcor are a direct result of diligently following up with the delinquent landlords.
Customer Service Builds Trust and Loyalty
A long-standing client did not have an internal real estate organization to manage and administer its international portfolio. Scribcor had been engaged to provide full-service lease administration services for this client’s domestic portfolio. The client notified the Scribcor team that they were undergoing an audit and were under the gun to respond to the auditors’ requests. Because of the client’s thin resources and urgency of the situation, Scribcor was asked if they could provide immediate help.
The Scribcor team went above and beyond to help the client navigate the audit. The Scribcor Account Manager went so far as to sacrifice her personal vacation time to ensure the client could respond appropriately. She made a special trip into the office and produced a just-in-time report that allowed the client to respond to the audit inquiry on time, thus avoiding a penalty and other unknown, but potentially repercussive outcomes.
Later, through an RFP process, Scribcor was awarded the client’s global lease abstraction and lease administration responsibilities. Scribcor won this business after competing against one of the industry’s largest real estate service providers and because of the high level of trust and track record of working with the client.
That sentiment was reinforced when the client awarded Scribcor the global contract. They remarked:
“Scribcor’s account manager dropped everything she was doing on one of her vacation days, rushed to the office, and in a few hours, was able to create a report that satisfied the needs of the audit. That kind of responsiveness would never have happened if the relationship was managed by a large, real estate transaction services provider.”
Scaling Up The Team and Compressing Down
the Timeline to Fit the Need
A Wireless is a Scribcor client that began their relationship with the company in 2013. The client approached Scribcor with a 16-week project to abstract 1,290 leases. Days after, the client decided they needed to accelerate the timing and require the project to be completed in just 9 weeks.
Scribcor leveraged their network and assigned their top project manager who assessed the client need, revised the project schedule, and assembled the right team to accelerate the project plan.
The team was able to ramp up and meet the client’s 9-week turn around deadline.
The A Wireless project manager said:
“We were thrilled with the results of our internal quality control and user acceptance testing. We could do no less than give a glowing reference to Scribcor.”