LEASE ADMINISTRATION CASE STUDY 3

Affordable Software Solutions And Attention To Specific Client Needs Results In $131,000 Savings

Client
A growing architecture and structural engineering firm with 30 offices throughout the United States.

Initial State of Lease Administration
The client grew very fast from three offices to 30; their real estate portfolio was managed by a real estate department consisting of one Facility Manager supported by the CFO and an administrative assistant. They worked exclusively with a brokerage firm that successfully addressed various business and real estate strategic objectives. On an operational level, however, the client found it challenging to implement the strategy due to lack of knowledge and critical dates administration of its growing portfolio. Additionally, the Facility Manager wanted to be able to create meaningful C Suite reports that would provide portfolio metrics, benchmarks and facility occupancy milestones.

Resolution
The client hired MBG Consulting to provide lease administration services. MBG advised on web-based software application at minimal cost that allowed the managers to view their leases and rental obligations and print reports outlining the portfolio’s critical dates — location, size, term, options, critical dates, responsibilities, lease contacts, rents, etc. The Facility Manager also provided MBG Consulting with human resources and occupancy data such as the number of personnel per office (office employees & all employees), number of workstations, private offices, and conference rooms. For each office, MBG tracked current, potential and absolute occupancy level which allowed the client and their broker to manage space utilization, chart meaningful trends, and plan in advance the growth of the company and related real estate activities.

Evolving Relationship
MBG Consulting and the client gradually expanded our relationship to include lease audits and to work with more business and real estate driven metrics which the client considered the most important function of lease administration. MBG brought value by being flexible, offering low-cost solutions, and concentrating on the client’s critical reporting requirements by creating and monitoring the reporting output that they specifically wanted to maintain.

Savings
MBG Consulting saved the client $131,000 to date by offering low-cost lease administration software and by correcting various billing errors. The value was also in the MBG’s flexibility in addressing the client’s specific reporting requirement needs in the facility management area.