LEASE ADMINISTRATION CASE STUDY 4

Software And Standardization Result In $79,000 Savings

Client
A multimillion electronics, multimedia, and semiconductors firm with parent in Asia and multiple branches in the US.

Initial State of Lease Administration
The client was paying all rental liabilities through one of its offices in Midwest. For the portfolio of one specific division with 26 locations, the CFO was paying all bills. The Director of Business Affairs was responsible for all lease administration, critical dates tracking, and lease negotiations. The firm contracted a major brokerage house to assist on the transactions and lease administration but the client felt its portfolio was not getting sufficient attention.

Resolution
The client hired MBG Consulting to consolidate the lease data for the purposes of tracking critical dates. The CFO wanted to continue paying the lease-related bills. We assisted the client in the software selection and abstracted all leases in a low-cost, web-based lease administration system. The client began receiving monthly standardized reporting that advised on portfolio changes, critical dates, options rights, and notifications. MBG Consulting augmented the client’s real estate operations by providing desktop and on-site audits and assisting in forecasting, benchmarking, and various other real estate related financial analyses.

Evolving Relationship
The client does not sign a lease without MBG’s advice on lease language and tenant’s rights. We negotiate all lease renewals on behalf of the client.

Savings
MBG Consulting saved $79,000 to date by offering low-cost lease administration software and by standardizing lease-related reporting output. We also added value by focusing our efforts on the areas where the client needed the most support.