Thought Leadership
What Do You Need to Know. Right. Now. About Your Lease’s Base Year?
Common area maintenance (CAM) reconciliations are processed by landlords throughout the year, but most often in the first half of each expense year. Some office leases have an amount relating to CAM built into their base rent charge, called a “base year.” This base...
Caps, Stops, Pro Rata Share and More! The Components and Mechanics of Expense Reconciliation
Commercial tenants are often financially responsible for their share of a property’s operating expenses, which can be a sizeable portion of their total lease obligation. Accurately calculating the tenant’s share entails a thorough understanding of each of the...
Have You Reviewed Your 2021 Annual Operating Expense or CAM Reconciliation Yet?
If your 2021 operating/CAM reconciliations have started coming in, the topics in this article will be helpful for you to keep in mind during your reconciliation review. The pandemic and other events of the past two years prompted us to take a closer look at several...
5 Things to Know. Right. Now. About Common Area Maintenance Costs
A tenant’s share of the costs to operate and maintain common areas of a property can be a significant financial component of a commercial lease. The underlying common area costs are detailed in a lease clause called ‘Common Area Maintenance,’ ‘Operating Expenses,’ or...
What is Equipment Lease Administration?
The accounting requirements for ASC 842, IFRS 16, and GASB 87 compelled companies to look at not only their real estate leases, but also added requirements for managing equipment leases. So, what does lease administration for equipment leases involve? Well, there are...
Back to Basics: The Lease Lifecycle
Most real estate and equipment leases tend to follow the same lifecycle pattern. Each phase within the lifecycle has activities and decision points that lease teams monitor and, at times, act upon. We are going back to the basics to discuss the life of a lease....
What is Real Estate Lease Administration? Does Your Company Need It?
Companies spend a significant amount of time and money negotiating their real estate leases. Whether you are in your company’s finance, legal, procurement, or real estate department, you have likely worked with your company’s real estate leases. Once a lease is...
5 Things to Know. Right. Now About the Value of Working With a Domestic Lease Administration Partner
Employee resignations, supply chain challenges, travel restrictions, and the continued impact of COVID-19 are among many reasons why executives are thinking about how they will conduct and manage their business going forward. The plan must be dependable, consistent,...
5 Things to Know. Right. Now to Start the New Year Strong
Day to day activity slows down at the end of the calendar year for many real estate and lease administration teams. Between holiday celebrations and perhaps some scheduled time away from the office, this time of year can offer dedicated time to spend closing out...
5 Things to Know. Right. Now. About ASC 842 / IFRS 16 / GASB 87 Adoption
If your firm is adopting the lease accounting standard for the first time, there is an endless sea of information available to learn from. It can be overwhelming to sift through the technical and practical guides, some of which contradict each other when it comes to...
Year End Lease Administration in a 2020 World
This year, it is more important than ever to prepare for year-end lease administration activities. During a year where some leases were modified for pandemic related reasons, some lease assets are impaired, expenses for health and safety efforts increased, physical...
Preparing for Potential Disruption – Three Concerns
Heightened concern over the spread of coronavirus is building worldwide consistent with the increase in number of confirmed cases. The virus has been reported in the Chicago area and proactively, like many other firms, we are taking steps to confirm that we are able...