Last Updated on March 17, 2022 by Andrew Flint
With COVID-19 impacting nearly every business in the short and long-term, tenants in all industries are having difficulty understanding their options for negotiating lease restructurings with their landlords. Two primary problems facing real estate decision-makers are identifying key language, dates, and financials in their leases, and managing a high-stakes negotiation process across multiple internal and external stakeholders. Whether you are managing five transactions or hundreds, a disorganized approach can add confusion, risk and precious time to the process.
To help, Occupier has functionality that enables tenants to track and manage key lease information and ongoing lease restructuring transactions — helping them identify opportunities and risks in their portfolio to adapt their business to this unprecedented time.
Why is managing lease restructurings so hard right now?
Under normal circumstances, tenants typically track their leases based on predetermined dates or events, or when the business dictates a real estate decision. But in this unprecedented situation, real estate teams along with their internal partners and external stakeholders are juggling an overwhelming number of possibilities to address cost containment in their portfolios.
On top of this, most businesses do not have a standard process for tracking ongoing deal negotiations, resulting in duplicate work across many individuals, which adds costly time to transactions. This makes it incredibly difficult for an organization to understand the full landscape of real estate risks and obligations, not to mention the ultimate impact on the business.
How does Occupier help?
In Occupier, users can:
- Easily understand all lease financials on a monthly, annual, or per square foot basis. This will help you immediately identify leases in your portfolio that present opportunities for renegotiation.
- Track sales figures, percentage rent and breakpoints specifically for retail locations. Combined with rent obligations, you can easily identify locations that are underperforming or need rent relief.
- Create and track lease restructurings in a central location, shared across your internal and external stakeholders. This will help you organize your team around a strategy for containing real estate costs in a single dashboard.
- Track negotiation history with your landlords to understand where each negotiation sits in real time. You can provide access to your brokers and compare deal points side by side immediately, allowing you to quickly triage negotiations and act fast to execute.
- Manage a multi-disciplinary team on each deal to accelerate the time to execution. This will help you provide visibility to key stakeholders such as brokers, attorneys and internal business partners.