DTZ

25 January, 2012

Many companies are making business decisions without a complete picture of their real estate portfolio, resulting in expensive mistakes and risk of noncompliance.

Step 1: Get reliable centralised data

There can often be an eclectic mix of spreadsheets, multiple incompatible databases or paper files when it comes to property data. Document sourcing followed by lease abstraction into a common format is the solution. The summarising of relevant information from complex lease documentation is a skilled task and it’s essential that abstractors are familiar with all aspects of property legislation.

Step 2: Keep the data relevant and ensure good governance

Best practice is the hosting of data on a range of commercially available database solutions, offering point solutions or integration with other related activity such as facilities management.
It is essential to ensure that the appropriate processes and controls are put in place to manage the data. Robust lease administration is all about, how to capture ongoing data changes in the portfolio; how to integrate lease data with financial administration; how to make sure you don’t fall foul of legal procedures in addressing lease events such as CPI increases, rent reviews, break options and term expirations; and most importantly, how to get business units owning or using the data to make sure it stays relevant to operations.

Step 3: Use the data to support business strategy

Centralised robust real estate data needs to be dynamic to realise the true value to the business. Benchmarking to market or peer groups, provision of active management information and the integration with market data to drive strategic portfolio planning, are just some of the ways where it can help develop business strategy.