ENCOR’s lease administration are administrative, clerical and lease management duties for customers that have multiple commercial leases – much like a property management service for corporate space users.
Our lease administrators work with tenants who are both corporate space occupiers (leasing space), and some of our clients are property owners in some markets (having a mix of owned and leased properties).
Our Lease Administrator Services are designed to assist our customers in the centralization, validation and administration of their real estate portfolios (leased or owned properties), so decision makers can make informed decisions.
Typically our portfolio customers have 50-100 leases and no dedicated internal resource to staff the administration, or 500+ leases with a light staff of 2-4 and need additional support to assist with new locations, renewals, and project management.
We also work with companies in the United States and Canada that are tired of paying $40k – $70k for a lease administrator job, but find that they are continually re-hiring and re-training for the role every year.
We can provide a range of products and services, including:
We are proud of the ongoing investment we make in information systems and professional development, as this allows us to address emerging technologies and constantly evolving client requirements.
The ENCOR team has the expertise to provide Lease Admin Services on a regional, national and international level in a proactive, first class manner.
We have developed many management tools, which are flexible and easily adaptable to our clients’ specific needs.
ENCOR’s lease admin services assist its customers in adhering to appropriate commercial real estate standards and policies, ensuring the proper cost control of their real estate portfolios.
Hear from our Chief Growth Officer Jeff Howell on why the turnover of Directors of Real Estate can cause critical milestones to be missed (with a surprising case study):
Our fee will vary by the size of the portfolio (both in total locations, and total square footage).
When ENCOR can earn a commercial real estate brokerage commission (paid by landlords), we are more able to complete other administrative work at lower cost, and those commissions can be pooled to support our team.
We will create a risk analysis with you upfront, and provide a complete quote prior to an engagement.
Our lease administrators have 3-30 years of experience, which also affects the fee, depending on how the team is involved.
Hear Jeff bring you through scenarios of why pricing varies based on the tenant portfolio and real estate types:
There are many products on the market, and our team is technology-agnostic – we will help you select the right platform.
Our preferred lease administration software to centralize documents, notes, tasks and documents is Hubspot, with a top 1% global Hubspot performer on our team.
The important traits of lease admin software solutions are to have redundant automated alerts, ensuring compliance and eliminating human error with any renewal process (flagging important dates like notice periods for lease renewals); automated tasks and messaging with IF / THEN statements (such as an automatic calendar invite to discuss key challenges, triggered upon lease accounting events like an increase in rent payments or lease terms such as rights of first offer).
Jeff’s thoughts on people, process and technology within commercial lease administration:
In our opinion there if no one best lease admin software – it really depends what your needs are. The main industry-specific players are IBM, Yardi, Penske, Visual Lease, Brokermint, Lease Harbor, Link Systems, AppFolio and LeaseQuery.
For moderate needs, Salesforce, Hubspot and Airtable are all robust enough to track critical dates, store lease agreements and lease data, and develop a strong lease administration process.
Yes, more companies are outsourcing their lease real estate portfolios and lease data to third parties. The global lease administration software market size is projected to reach $1,738M by 2028, up from $622M in 2022 (source).
It’s not just the size of the lease admin software market that is growing – more companies are offloading leased assets to lease administration companies to free up time for decision makers to to focus on their core business, while letting lease experts handle their multiple locations.
We typically sign for a 3 year engagement, and that includes the upfront work of assembling the documentation into a lease administration system of record, either from scratch (paper-based), or importing data from another system (often spreadsheets or a legacy software system).
Most organizations stay with us for longer than the initial agreement as they are happy with our ability to negotiate costs and savings with 3rd parties, respond to tasks, maintain compliance, pay rent on time and develop a strong working relationship with each building owner.
Our lease administration services include brokerage work (representing clients in acquiring new leases, moving and even project management for their build out).
Our lease administrators manage your entire portfolio – in most cases that involves lease abstraction, lease accounting, managing operating leases, and then nearing lease expiry, we stay ahead of the market by scouting competitive spaces.
Our objective is to enhance decision making, so that you can decide on the renewal/relocation decision for each location.
Our fees are flexible – in markets where our lease administrator team can collect a real estate brokerage commission from the respective landlords, that pool of funds can offset any fees directly billed to our clients.
We manage our real estate lease portfolios with the care we would as if it was our own company.
No amount of advanced technology will help with the soft skills of ensuring that your local employees will have a strong relationship with the landlord and property management company, and our role is to ensure that all matters are dealt with in a professional manner.
We work with lease portfolios of all sizes, and that answer depends on average length of lease term, propensity to relocate, difficulty to scout alternative spaces, lease accounting standards for the regions, lease administration time required and level of reporting required by the client – we provide a custom proposal for each prospective client.
No matter what commercial real estate firm you or lease data management firm you hire, you really want to ensure you have a project lead that is unbiased in selecting brokers where required.
The real magic is in managing multiple leases, lease expirations, automated alerts, and someone you could trust as if they were your in-house building managers.
Regardless of the market coverage of the large brokerages, they will have conflicts of interest in all markets (representing both landlords and tenants), and will have some markets in which they are weak, and you are obligated to work with that brokerage.
ENCOR is free to work with the best-in-class brokerage in every individual market while running a competitive process for each firm to compete for your business.
So you can focus on your core business while we manage compliance with your portfolio of leases.
It depends on your lease portfolio.
The first step in our lease administration process is for our lease administrator team to review your lease data, map the critical dates, rent payments, lease terms, lease renewals, legal terms and operating expenses.
Cost savings will come in the form firstly in a reduction in salary for lease administrators internally (top lease admin salaries are currently about $80k annually).
The second thing we look for right away in the lease data are the opportunities for early renewals – opportunities in which the market has turned, and landlords willing to agree to early lease amendments (with free rent or giving back space).
Our team of real estate professionals are ready to complete a complimentary assessment of your portfolio.
We work with lease portfolios of all sizes and geographies – industrial, office and retail throughout North America.
The next step would be a lease portfolio review, and sample lease abstraction on a few of your leases.
This allows us to showcase our process and reporting style, and a sample lease abstract on a few of your leases will enable us display what a lease management engagement with us would look like.
For more information on how we assist existing tenants across North America with their lease admin, please reach out to our Chief Growth Officer, Jeff Howell at jhowell@encoradvisors.com and set up a date to connect, or you can fill in the form below: