IN THE WORKS

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?

Managing commercial leases throughout acquisitions, operations, and dispositions can be complex and time-consuming. But at Property Works, we simplify every stage of the process so you can focus on maximizing profitability. From lease administration to occupancy cost auditing and tax compliance, we take on the heavy lifting, ensuring your leases drive maximum returns with minimal effort from your team.

Congratulations! Your company has expanded its footprint through a successful acquisition. Now comes the process of integrating the new locations into your existing operations. One crucial area demanding attention: lease management.

If you're leasing a commercial space, you might come across a lease structure that includes percent rent. This model allows you to pay a base rent plus a percentage of your gross sales, which can be a great option for businesses looking to manage costs during slower sales periods. But how does percent rent work from a tenant’s perspective, and what should you keep in mind when it's time to pay?

If you’re a multi-unit operator in the retail or restaurant industry, you know that managing percentage rent across different leases can be a daunting task. Percentage rent is a type of lease arrangement where you pay a base rent plus a percentage of your sales once those sales exceed a set threshold (the breakpoint). While this setup offers flexibility, the complexities multiply when dealing with several locations, each with unique terms.

Percentage rent is a common feature in commercial leases, particularly in the retail sector, where it allows landlords to benefit from the success of their tenants. But while the concept is straightforward, the process of calculating and managing percentage rent can be complex and time-consuming. To help you navigate this aspect of lease management, here’s a step-by-step guide to processing percentage rent.