Are you tracking the right portfolio and lease metrics for your CRE?
Portfolio and lease administrators can make or break your organization’s ability to optimize the outcome of corporate real estate (CRE) transactions and investments.
From performing transactions and overseeing leases to analyzing risks and opportunities of real estate investments, the decisions these professionals make directly impact the bottom line.
But how are they making these important decisions?
Without data to point them in the right direction, portfolio and lease administrators may feel like they’re flying blind. Real-time information is required if they’re expected to know whether all upcoming lease events are covered, if lease costs are higher than the current market rate, or whether your organization is positioned to quickly make lease changes to accommodate a growing workforce.
The amount of CRE data at your fingertips can be overwhelming, so our real estate experts put their heads together to pinpoint three important metrics for portfolio and lease administrators to measure.
Are you on the right track?
1. Lease costs
Lease cost metrics expose how much you spend on leases and compare that number to market data. This brings a new level of transparency to annual lease expenditures, so you know what it really costs to run your business—and how your leases contribute to ongoing CRE operating expenses.
Use this data to identify out-of-alignment lease costs in regions where you pay significantly more (or less), so you can prepare for the next step. If costs are too high, should you consider renegotiating or moving? If costs are too low, is there a price hike on the horizon?
You can also compare your lease spending to budgeted amounts to see whether the organization is spending more, the same, or less than anticipated on lease costs.
2. Transaction cycle time
How long does it take to complete a lease transaction? How do transactions typically progress? How quickly can you pull the trigger on a new opportunity when it arises?
A metric that tracks transaction cycle time can tell you. It reveals how much time is spent managing and completing transactions, so you can better plan for what’s ahead and see how quickly your organization is able to react if change needs to happen.
3. Lease events
This metric keeps track of upcoming lease events—signings, renewals, terminations, rate increases, etc.—that require action soon.
With this level of visibility, portfolio and lease administrators can be proactive with decisions by predicting, budgeting, and planning for future expenses—instead of quickly reacting after realizing something needs immediate attention.
Get a big-picture overview of where your leases are in the administration process to ensure critical tasks and dates aren’t missed. You’ll always know which critical lease events are coming (and when), whether the lease process is being held up at a certain point, and how many leases are currently being managed.
Prioritize your portfolio and lease administration metrics
The performance of your CRE depends on tracking the right portfolio and lease administration metrics.
JLLT can help you identify your business goals and challenges—and then pinpoint the portfolio and lease metrics that will help you achieve them. You’ll feel prepared to confidently adapt your portfolio to the needs of your business. Ready to talk to a real estate analytics expert? Contact us.