A major food and beverage brand struggled with managing its long lease documents that come in a variation of 10-15 pages per lease. Due to the nature of its portfolio with numerous properties located across the country, the challenge was even worse. Each lease contained complex terms, duties, and demands for compliance which made manual lease management difficult and prone to mistakes. Moreover, the tracking of multiple lease renewal dates, financial commitments, and other major provisions in leases made it more complicated than ever.
Ineffective lease administration resulted in missed deadlines for lease terms, incurring penalties for non-conformity, or financial loss. Therefore, a high-tech solution was needed to manage all leases efficiently, allowing timely updates on renewals as well as tracking them flawlessly. Additionally, proper handling of leases for smooth operation and legal and financial compliance was equally important.
Challenges of Lease Management for Food and Beverage Companies
Within this brand’s leasing portfolio were many spaces characterized by distinctive lease provisions, variable rent increases, and significant deadlines. Regrettably, the absence of a centralized database for these leases was extremely complicated leading to the problems outlined below.
- Complex Documentation: The lease contracts were lengthy and contained an excessive number of provisions. This made it difficult to keep track of any crucial information or factors of compliance. Each lease agreement was several pages long and crucial information often got buried in the paperwork. Furthermore, this complexity made it harder to guarantee that all monetary and legal commitments were continuously met at different locations.
- Handling Multiple Leases: They encountered complexity in handling many leases across a variety of properties, which raised the possibility of missed deadlines for renewal dates, rent escalations, and other important dates concerning leases. Because there were so many leases, it was challenging to remember these critical dates. In addition, the lack of a centralized monitoring system raised the possibility of discrepancies in leases, which caused operational errors and monetary losses.
- Inefficient Tracking and Limited Visibility: It was challenging for the business to track the primary lease terms, including payment requirements and renewal dates. Furthermore, no single report could gather all the information needed, making it impossible to compile complete reports or analyze leasing data collectively. Due to this fragmented approach, there were deadline and financial inconsistencies overlooked, and the entire portfolio of leases lacked transparency.
How Does CRE Lease Matrix Enhance Lease Administration for Food and Beverage Companies?
To confront these issues and simplify the brand’s leasing management processes, a partnership was formed with CRE Lease Matrix. The goal was to install a centralized and automated system that would assist in enhancing both precision and tracking while simultaneously giving them improved insight into all their leases.
- Custom Profiles Setup: CRE Lease Matrix devised tailored profiles for each property and lease agreement including their specific lease terms, obligations, and renewal schedules, waivers, etc. A centralized database consolidated all relevant lease-related information into a single source of truth accessible to everyone. By doing this, data management was made easier, which in turn allowed for appropriate detail monitoring and quick access to important lease documents of the entire portfolio.
- Hierarchical Structure and Directory for Occupiers: A system was created on the platform for organizing leases according to property types, lease types, and other relevant classifications, which made finding lease information easier. An occupant’s directory was also created that brought together tenant particulars, addresses, GST details, TAN and PAN details, etc. in one place keeping records in order.
- Automated Alerts: The system incorporated automated alerts and reminders for key dates, such as lease renewal dates and payment schedules, significantly reducing the risk of missing critical deadlines. These alerts were configurable, allowing the business to tailor notifications and simulations to their specific needs. This ensured proactive management and informed decision-making.
Results
By using the CRE Lease Matrix software, the food and beverage brand was able to streamline its formerly laborious lease management system and restructure it into a well-organized and effective framework. The brand was able to manage many leases concurrently while maintaining their progress. With the tailored profiles, hierarchical organization, and automated features, the brand saw its lease management efficiency increase by 70%. It enabled them to manage multiple leases effectively, ensuring timely compliance and informed decision-making. This solution not only fulfilled the needs of the brand at that particular time but also provided a scalable framework for future lease management.
Don’t let complex lease portfolios be a burden for your business. Streamline your lease management process and gain complete control over compliance, deadlines, and financial obligations with CRE Lease Matrix. Book a demo now!
