Commercial Lease Abstraction of a lease simply refers to the process of finding relevant data that is crucial for the management and then compiling such data into an excel report or uploading the same into a database. The aim of the abstraction process is to help the business in making cognizant decisions regarding the smooth functioning of the organization. An abstraction report is a summary of important information relating to financial and legal information and related documents such as owned property documents, deed of sale or valuation reports.
The lease abstractlease abstract document usually contains information relating to the location of the property, the tenure of the lease, tenant and landlord obligations, specific use of property leased, parking arrangements, termination terms, etc. The modern business world have realized that the process of lease abstraction is crucial for the effective management and growth of the business.
The concept of outsourcing has helped in discovering many options for getting the abstraction done effectively and economically.Especially trained teams are being used by offshore vendors for performing commercial lease abstraction work. These specially trained work forces operate across multiple locations and are experts in the lease abstraction process ensuring an accurate and efficient end product at an economical cost. Lease abstraction is a fundamental part of the real estate due diligence progression and can be a monotonous task as it involves one’s focused attention so as to capture each and every detail with a emphasis on accurateness. At times it becomes difficult to understand complex lease provisions and financial obligations, and other matters of importance pertaining to commercial real estate leases. Complete Legal Outsourcing supports a lease abstraction team that is proficient in identifying the complex issues and accumulate them in a simple summary that can be easily reviewed by the clients.
The mandatory rules for an effective and efficient lease abstraction process are that one should support a team of highly skilled resources proficient in the abstraction process, clear understanding of the data that needs to be abstracted, art of demonstrating a track record of best practice in commercial lease abstraction and a strong project management to effectively manage the communication and document collection requirements. Usually the lease abstracts vary in length depending on the information contained in the lease agreements and the details that need to be abstracted as per the client instructions and needs. The lease abstract summarizes crucial financial, business, and legal information that is needed for easy reference as it evaluates prominent lease terms so as to provide the reviewer the info in an easily accessible way, thus allowing the client to review all relevant details of the commercial real estate lease without the need to read through each and every page of the lease document.
The last decade has seen a tremendous growth in the commercial lease abstraction industry. Stress is now being laid on getting the abstraction process automated. Efforts are also being made to ensure highly effective cross-checking techniques, and error tracking and productivity statistics and automated workflows. The abstraction team at Complete Legal Outsourcing also helps its clients by developing a lease abstraction software for the clients sole use which can be accessed remotely through a shared folder thus enabling the client to use the services of offshore vendors that help real estate companies and law firms with their lease abstraction projects thus resulting in reducing costs and saving valuable man hours that can be effectively used towards a more fruitful purpose.
Abstraction has a major part to play and has become a critical groundwork for 1) cost saving initiatives, 2) risk mitigation and 3) strategic portfolio optimization. Abstraction provides detailed cost statistics necessary and combines it into a chief data source. A strong skill resource then analyses and organizes the data into reports and identifies the inconsistencies. This ensures that landlord reconciliations are accurately and effectively performed, expenses and taxes are billed in a consistent fashion, the landlord is charging precise amount of rent and insurances are being paid. Abstraction provides an estimate of the property expenses and ensures that adequate funding is available.
The process of lease abstraction is a cost-saving initiative that helps in strategic planning and portfolio optimization. It also enhances organizational effectiveness and speed and supports the corporate compliance requirements. An effective lease abstraction project ensures data accuracy and helps in documenting all important information within easy access.
Share your abstraction needs with the proficient team of Complete Legal Outsourcing and relax as we are well known for providing accurate lease abstraction services at an very competitive price and within a stipulated time frame. Be our esteemed client and reap the benefits of outsourcing by allowing us to take care of your lease abstraction needs.