IN THE WORKS

By Gwen Kelly, Partner at Property Works Gwen has been auditing occupancy costs for over 25 years.

For restaurant and retail chains juggling leased locations, the specter of ASC-842 looms large even as we enter into 2025. This complex accounting standard, demanding comprehensive lease recordkeeping, often triggers groans and late-night spreadsheet sprints. But what if the real culprit behind your ASC-842 woes isn't the standard itself, but the disconnect between your lease administration and accounting departments?

As we step into 2025, multi-unit operators in the retail and restaurant industries find themselves at a critical juncture. Shifting consumer behaviors, rapid technological advancements, and evolving lease dynamics are redefining the landscape. To stay competitive, operators and property managers must anticipate these changes and adjust their strategies accordingly.

Operating a multi-unit business involves a complex array of licenses and permits. This guide serves as your strategic advisor, helping you navigate the regulatory landscape to ensure your operations are compliant and efficient across all your locations.

For operators of multi-unit businesses, managing licenses and permits can be a daunting task. The complexity of this process stems from various factors that can hinder operational efficiency and legal compliance. Here, we explore the key challenges that multi-unit operators face in this critical area of business management.

If you’re managing multiple locations, ASC 842—the new lease accounting standard—might already feel like a big deal. This rule, designed to make financial reporting clearer and more comparable, means that leases longer than 12 months will now have to show up on your balance sheet. While this can feel like a lot to navigate, it’s important to understand how it affects your operations and what you can do to stay compliant, all while keeping your lease management efficient.

The terms "lease management" and "property management" are often used interchangeably, but they refer to distinct roles in the real estate world. While both involve managing properties, the responsibilities and focus of each are quite different.

Managing leases for companies with multiple locations can quickly become overwhelming. Leases, amendments, letters of intent, renewals, and other related documents must be stored, tracked, and referenced across departments, making effective document management crucial to successful lease administration. Here's why a solid document management strategy is indispensable:

Centralization serves as a critical framework for enhancing organizational efficiency, particularly through fostering inter-departmental conversations that create a culture of collaboration. By unifying departments under a centralized system, organizations can streamline processes, reduce redundancies, and significantly improve efficiency.

Managing a portfolio of leases is no small task. It requires specialized knowledge, careful attention to detail, and ongoing compliance with ever-changing regulations. For many companies, the debate boils down to this: should we hire an in-house team to handle lease management, or should we outsource to a specialized provider?