NDNB's real estate, lease management & consulting services include the following:
• Potential Tenant Credit Analysis
• Property Performance Modeling (from acquisition to reversion)
• Portfolio Management
• Drafting Lease Provisions
• Lease Administration
• Lease Abstraction
• Continuing Lease and Invoice Payment Review
• Payment Functions
• Lease Audits
Potential Tenant Credit Analysis
Before letting a tenant take possession of the property for an extended lease term, due diligence should be performed on the likelihood that the contemplated tenant has credible business operations such that the terms of the lease can be complied with financially. We consider balance sheet and income statement trends and ratios, along with other facts & circumstances to assist the landlord with making proper tenant acceptance judgments.
Property Performance Modeling
By using various modeling tools, along with the relevant data for the marketplace applicable to the location, property type, and professional judgment, we can assist in modeling various real estate performance criteria for portfolio projection on an after-tax basis. The analysis can model various outcomes on a best-case to worst-case scenario, along with impacts on the client financial position and the greater portfolio performance.
Portfolio Management services can vary based on the needs of our clients from buy-sell decision assistance to the actual management of service providers, tenant management, asset management, and other general services.
For landlords that are not present and need some supervision of the management company, the tenant, or the service providers, the Lease Administration services can involve oversight of tasks or function including other professionals, managing critical dates, rents, real estate taxes, property insurance, common area charges, tenant improvement allowance reconciliation and recovery.
For keeping complex documents in a useable format, a lease abstract is summary of the key financial, business and legal information that exists in a commercial real estate lease. It brings any unusual lease provisions, financial obligations or other important issues to the reporting and consideration forefront for the lease administration. Each abstract will vary in length and detail depending on the particular needs of the client. An abstract is like an outline of the lease, providing a summary of selected lease information and directing the reader where to obtain further information. More specifically, a lease abstract provides a lease summary, together with referenced section headings so that all critical lease information is readily accessible. Lease abstracting becomes particularly important prior to an acquisition, merger or assignment and allows for effective decision-making.
Abstracts also permit a lease administrator, leasing agent or property manager to easily review all relevant lease information without taking the time to search and read through each page of the lease. By aggregating the lease information, abstracts allow users to better manage a portfolio of leases. Lease abstracting serves to organize your lease data, which is a crucial benefit when leases contain many amendments, when landlords or tenants hold sizeable lease assets, or when dealing with a variety of lease formats. The lease information that should be abstracted depends on the individual needs of the client and is contingent on several factors, including the reasons for abstracting and the length and complexity of the lease documents.
A Lease Audit can uncover problems and help clients save money in:
• Operating Expenses
• Utilities Costs
• Real Estate Taxes
• Additional Services
The Corporate Real Estate Services Lease audit typically consists of a three-phase process:
1. Pre-Qualification Analysis: We conduct an analysis of all lease and occupancy charges to pre-qualify the client's specific situation. We also will perform an expense trend analysis and market comparison during this phase to evaluate the potential for overcharge.
2. Detailed Audit: We will conduct an in-depth and thorough audit of landlord records to pinpoint errors that affect you. This phase includes a review of the general ledger and other accounting records, paid invoices, service contract, calculations and adjustments used to arrive at the amounts billed.
3. Resolution: We will also handle the process of negotiating a settlement, which includes recovering overpayments and achieving a mutual agreement for future billing practices.