Hybrid work and “the future of office” are shaking up how corporate office tenants use and evaluate their office space needs. With every space and lease being reevaluated, having the right tools to collaborate and make data-driven decisions is important to finding the balance of space optimization, while providing enough office space to not reduce productivity or hinder company culture.
Businesses are faced with multiple transactions that need proper management to ensure they are recorded accurately and in compliance with all standards. Given the complexity of such transactions and the large amounts of documentation, payment dates and modifications or renewals to existing contracts, lessee transaction management software can be a great solution to keep track of and manage all aspects related to the lease lifecycle.
Here are some of the most important benefits of real estate transaction management software and how it streamlines CRE strategy and decision making.
Cost Savings Opportunity
Deciding on a new lease or renewing an existing one with reduced square footage can serve as an opportunity to save on real estate costs. If a business requires less office, as workforce moves to hybrid or remote working, it can likely lower its real estate expenses while maintaining enough capacity to serve its employees still utilizing the space. With a hybrid working model in place, companies can reduce their traditional office footprint or replace it with flexible solutions that focus on the cultural aspect of office work rather than the traditional approach of leasing enough space to support a 1-to-1 ratio of desks to employees. This approach is also supported by the rise of coworking spaces available, which are becoming a more and more popular choice among large companies.
Deciding on Traditional or Flex Office Space Solutions
For some companies leasing traditional office space and only using coworking spaces for overflow is an option that allows the company to run efficiently and for employees to have a great work experience. This is where a solution like WeWork Workplace can come in handy. The app enables decision makers and employees to search and book available space across all offices of a company, 500+ WeWork locations or both. Employees can look for an office that might be closer to a client in case they have a meeting or if they are traveling to a conference. In all these scenarios, companies can benefit from keeping, or reducing, their traditional leased footprint, while also giving employees the flexibility of working from a coworking location, if needed.
As far as managing traditional leases goes, solutions like Yardi Corom provide a way for companies to manage their entire lease portfolio lifecycle. For those wanting to evaluate current leases to determine whether they will renew, look for a different space to lease or transition to a flexible/coworking option, leveraging transaction management software for the workplace can help ensure data driven decisions are easily analyzed. The core data points needed make efficient real estate decisions are a blend of the company’s in-office approach (full remote, hybrid or back in office) combined with utilization data of each space, hiring plans and the lease costs. This is relevant in determining whether companies need to increase or reduce their office footprint to properly accommodate employees and decrease leasing costs.
It also allows the people involved in the lease management process to understand what the review process for renewing spaces entails while allowing for an easy, side-by-side comparison of different lease options. A good tenant rep broker can be looped into the process to ensure that all details of the lease are easily discussed and handled to support a streamlined process. Software like Yardi Corom Transaction Management allows the occupier to invite their tenant rep to a specific portfolio of leases to help in the overall process.
The Benefits of a Single System for Corporate Real Estate Management
Having a single system of record that encompasses lease administration and the transaction management process increases synergy. A system like this allows companies to have easy access to renewals and option data on all leases by triggering notifications to make the right people aware of any changes and to get them up to speed quickly. When deciding on the right space to lease, having all the information is essential. Yardi Corom Transaction Management is a great tool for layering utilization data to ensure that you are optimizing space needs against the office space options that are being considered.
As mentioned above, the platform also allows for the tenant representative to easily be a part of the process. They can upload essential documents into the system for review, making the entire process more efficient. The company representative and the broker can meet and review lease terms and options side-by-side. This uncovers all possibilities and economics of each lease option and enables the company to make the best decision when looking at a new lease or a renewal. Furthermore, market data and local insights on average rents can be layered on top of the existing office space data, which can be a great aid in the negotiation process.
Finally, once a renewal or a new lease is decided upon and completed, all the final documents can be flipped into the lease administration part of the Yardi Corom system. This allows for time efficiency and cost savings usually needed for the lease abstraction process.
Yardi Corom is here to help our clients make smarter real estate decisions, have a streamlined transaction management process and optimize their real estate costs. With software solutions that provide support from initiation to completion, to lease management and lease accounting, companies can ensure that all their real estate decisions are the right ones to fit the company’s needs.
Yardi Corom is a simple and comprehensive accounting, lease and workplace management solution for CRE tenants. Our cloud-based software solution increases efficiency and accuracy across your entire lease portfolio: manage leases and subleases, track key lease data, centralize transactions and become FASB/GASB/IFRS compliant. To learn more, you can visit our website or schedule a meeting with our team.
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