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Our Mission    “To be your Real Estate Partner by providing the most comprehensive commercial lease administration services available”

The Lease Administration Environment Commercial real estate leases are living documents that provide Landlord and Tenant a written understanding of the responsibilities and obligations of each party.   Leases are dynamic; they are subject to change and interpretation. Unlike the Landlord, the Tenant’s core business is usually not real estate, and yet the Tenant must have just as firm an understanding of the Lease documents as the Landlord.   With the ever-increasing complexities of commercial real estate, it makes good sense to establish partnerships with professionals in the real estate lease industry who can focus on all critical issues of a Tenant’s obligations.   It is especially advantageous for the Tenant (client) to find a real estate professional company that deals exclusively with commercial lease administration. To “administer” the lease portfolio of a client requires a depth of industry knowledge, a keen insight into the understanding of commercial leases, and a strong sense of due diligence on behalf of the Tenant side so that Landlord and Tenant are equals.   As equals, the Tenant not only understands his obligations, but also those of his Landlord.   “Lease Administration” is the combined art and science of ensuring that the Tenant side is fully aware of all obligations and is able to anticipate those obligations.

The State of the Industry Fact #1 --- The investment in Tenant lease expense for many companies can rank as high as the 3rd or 4th most costly item on the balance sheet (behind labor and cost of materials). Fact #2 --- Today’s difficult business environment is causing many companies to review their administrative costs of doing business.  The result is often the compression of management layers, the downsizing of administrative personnel, the closing of unproductive facilities, and the outsourcing of some corporate functions to specialists. Fact #3 --- All of these changes are intended to make companies leaner and able to conduct the desired sales volume at lower cost.

Impact on Lease Administration Companies who are corporate tenants in 15 or more locations nationwide face a myriad of new challenges in the administration of their leasehold interests Reduced resources are forcing some companies to concentrate their most productive people on the transaction side rather than the administrative side of the lease business. Some companies are expanding, merging, purchasing other companies --- adding the challenges of incorporating different systems, which can threaten their ability to centralize control of lease administration. The need for administrative expertise is increasing; it is not a “clerical task”. The need for lease abstraction expertise is critical in order to capture complete and accurate data regarding each and every lease. As the lease administration tasks become more complex, there is a greater need to utilize more sophisticated software to track lease obligation $, Sublease income $, option/right notification dates, expiration dates, rent roll verification, remaining obligations, contact names/addresses, electronic filing of lease images, etc. What software is appropriate?  There are too many leases to track via spreadsheet; the only solution is a well-conceived, stable database combined with qualified administrative personnel

Why Outsource Lease Administration Ultimately, your company should consider outsourcing when you can access greater resources to accomplish a task or you can reduce risk. Consider why thousands of companies outsource the administration of their number 1 cost --- labor (payroll) Like payroll, lease administration is complex and ever-changing.  A lease is a living document that requires constant attention.  There are options/rights (to extend, expand, contract or terminate), all sorts of amendments to terms, rent bumps (either step-up or CPI), reconciliations of Landlord pass-through expenses, changes in notice addresses, estoppels,  to name a few. Like payroll, lease administration can be labor intensive; however it cannot be done by “entry level” personnel. Like payroll, a mistake can be costly.  Imagine the potential cost of failing to provide timely notice to extend the term of an important lease.  The consequences could result in “loosing your lease” or having to renew at  higher “market rates”. Like payroll, there is a critical reliance on high quality software to perform all the needed tasks of lease administration. And, if your company’s lease administration is de-centralized, outsourcing can be a great solution to centralizing control of newly acquired or affiliate/subsidiary company’s leases.

Why Commercial Lease Admin Services, LLC  (CLAS) The highest standards of due diligence Proven procedures for getting the data correct from the inception The desire to communicate with your staff constantly and honestly No nonsense, no smoke.  We truly want to be your partners in the management of your portfolio Not affiliated with any real estate brokerage company.  We are licensed but do not seek an agency relationship. No rookies, only highly trained very experienced professionals Monthly fees that are very likely to be less than your cost Database software that is specifically adapted to internet use, programmed in the newest technology called “cold fusion” Ten standard reports that are meaningful and extremely useful--- all viewable on the internet 24/7 Software that is structured to make additional, custom programming easy to accomplish Ability to view your data any time, anywhere on the internet with the highest of security and privacy Electronic filing of your lease related documents, viewable on the web with full linking to critical data Flexibility that includes an option to license our software and do the maintenance yourself --- to lower your costs even more Proven techniques to work with your staff to accomplish rent roll verification and reconciliation of recurring costs ---- before you make the next month’s payments.

Value Analysis - Full Service Part I Example: consider XYZ Company having 30 leased locations as a Tenant. XYZ uses its own Microsoft Access database or Excel Spreadsheet and employs a Real Estate/Facilities Mgr plus 1 clerical staff. Value added by CLAS: Total reconciliation of all lease locations/verification of all lease data---quite often there are surprises in this process, like the discovery of a lease that has been paid 2 months after it expired because XYZ “autopays” its real estate expenses.  This process is especially critical at the start of the project Professional lease abstracting that often reveals issues needing immediate attention Database creation with links to all legal documents for additional sight verification and document backup Reports that deliver more than what most systems promise, even the very expensive systems Management information reporting that is displayed on the web for real time access and availability anywhere Eliminate the need to have your own trained staff to abstract lease documents and input data.   After all, it’s the results you want.   You only need to send documents to us via mail, fax or pdf attachments to email.   We do the rest. Eliminate your reliance on “in house” software that could be inadequate, or might involve long delays in getting your IT dept to re-program/enhance

Value Analysis - Full Service Part II XYZ Company Anticipated Savings: Elimination of in house IT costs of maintaining software Improved turnaround of implementing software customization Re-assignment of 50% of one administrative staff member at an estimated cost of 30,000 annual salary plus 20% benefits ( $6,000 ) for a total annual savings of $18,000. More productive use of Real Estate/Facility Manager’s time due to enhanced reporting and less need to supervise clerical tasks

Value Analysis - Full Service Part III XYZ Company Anticipated costs of implementing and using the CLAS system and personnel. One-time fees: One-time set up fee to create and customize the XYZ database: $750. One-time fee for abstracting 30 leases and populating the CLAS database: $2,850. Total one-time fees: $3,600. Monthly Maintenance fees: 30 leases @ $9.75/lease = $292.50./mo. for basic service. (The monthly fee includes unlimited scanning and abstracting of all additional documents ( i.e. Amendments, Estoppels, Year end Operating Expense Reconciliations, Correspondence, etc. ) for each pre-existing lease in the database for as long as that lease is active). New leases will be added to the database according to the one-time fee schedule. b. Rent roll verification is an additional $5.00/lease/mo.

Value Analysis---Summary Using the example of the XYZ Company: Potential monthly savings of $1207.50 with re-assignment of 0.5 employees (After initial one-time costs) - Full Service by CLAS. Potential 1st year annual savings of $10,890 with re-assignment of 0.5 employee (After initial one-time and all monthly costs). There is even savings of over $450./month if XYZ re-allocates only 25% of one employee from lease administration to other tasks Risk reduction due to Options/Actions reporting plus automated email notification based on advance notification of future options and rights. Possible savings by having CLAS,LLC serve as your watchdog over Landlord billing of pass-through expenses – Free desktop auditing.