When outsourcing your real estate functions, it may seem natural to turn to a large commercial real estate services firm that promises to manage all your needs — from facility management to lease administration. While a one-stop-shop model can offer advantages in certain areas, such as integrated workplace management, not all services benefit equally from bundling.
For example, functions like property management, sustainability, capital project management, and asset management often achieve synergies when closely aligned. However, lease administration typically operates as a back-office function that lacks the same integration benefits and may even conflict with other corporate real estate (CRE) services.
To illustrate: Purchasing coffee at a gas station is convenient. You can refuel, wash your car, and grab a quick cup of coffee with a single transaction. Yet the quality of the coffee — usually limited in options and standard in taste — may leave much to be desired. If you prioritize a high-quality coffee experience, you’d likely visit a specialty coffee shop where skilled baristas customize your drink to perfection. Similarly, lease administration deserves specialized expertise, not a one-size-fits-all approach bundled with unrelated services.
Myth-Busting Common Misconceptions
Myth 1: Bundling Lease Administration Saves Money
Fact: Lease administration costs are labor-driven. Large brokerage firms often carry higher overhead, making their services equally or even more expensive. Any perceived savings in a bundled model are typically hidden within commission rebates. When lease administration is outsourced to a third party, clients should see a corresponding increase in their commission rebate, offsetting any additional costs.
Solution: Scribcor Global offers competitive pricing for lease administration services. Our firm leverages the same labor pool that the large commercial real estate firms do without the heavy overhead.
Myth 2: Centralized Data Is More Convenient
Fact: There is real value in combining lease data with market data in order to build a complete picture of your portfolio position and opportunities. Some firms may recommend the use of the service provider’s proprietary technology in order for the data to be ingested efficiently. However, any advantages or efficiency may be quickly outweighed by the risks and challenges, including dependency on the vendor and high costs if you decide to switch providers. Modern APIs and data feeds offer seamless data sharing between systems without locking clients into proprietary platforms.
Solution: Scribcor Global offers clients the flexibility to choose the lease administration software that best matches their unique needs, and we work in the system that is best for you. Our clients own their software license and control the access to their real estate data, providing a higher level of internal control, greater data security, and the option to make changes when necessary. Our team is experienced in all of the leading 3rd party systems and has experience working with clients to build the API and data feeds into data warehouses, accounting systems or data warehouses.
Myth 3: Conflicts of Interest Exist in a Bundled Model
Fact: This myth is true. Service providers who represent landlords in property management or billing services face inherent conflicts of interest when also representing tenants. While restricting ethical walls are claimed with the process and procedures, they cannot fully eradicate the risk of bias or influence which may impact the service or financial results.
Solution: Scribcor Global offers tenant-focused lease administration, free from conflicts of interest. Our team is dedicated solely to your needs, ensuring your best interests are always our priority.
Myth 4: Standardization by Large Firms Improves Efficiency
Fact: Standardization can become a liability when a client needs to deviate from pre-set templates and processes. Large firms often rely on offshore teams trained to follow rigid workflows, which can lead to poor adaptation, reduced performance, and diminished quality.
Solution: Scribcor delivers tailored services designed to align with your specific business needs. Our experts provide a consistent level of excellence, ensuring customized solutions that address your unique requirements.
Why Scribcor Global?
At Scribcor, we believe in delivering independent, unbiased lease administration services. Our approach is client-centric, with custom-tailored solutions that integrate seamlessly into your organization. With decades-long partnerships and a commitment to high-quality service, Scribcor is more than a service provider—we’re a trusted member of your team.
Let us help you Know. Right. Now.
Contact us today to learn how Scribcor can enhance your lease administration processes with expertise, transparency, and a focus on your success.