With companies looking for ways to control costs and save money, many are turning to their commercial real estate obligations. While looking for ways to re-negotiate or exit unneeded space is the first thing that comes to mind, many companies are missing an opportunity to utilize lease administration to save money by better managing one of the largest expenses on their financial statements.
National Lease Advisors President, Ed Muna, shares lessons learned from helping public companies adopt the new ASC 842 lease accounting standard.
San Diego, California / September 14, 2020 – National Lease Advisors, Inc. today announced the addition of Tiffany Smithson to the team as its Director of Client Services. Tiffany will assume a leadership role in the company’s lease administration division.
It is not uncommon for tenants to need to sublease their space. Here are six items to consider when subleasing space.
As a result of the COVID-19 pandemic, many companies have negotiated rent deferrals with their landlord. Under a normal environment, ASC 842 would require a remeasurement of the right of use asset and lease liability. Of course, this is not a normal environment.
Operating expense traps like the Base Year reset can be confusing and easy to overlook. That is why it is critical that companies bring in a tenant representative on all lease transactions, including what may seem like an easy renewal.
Under normal circumstances, a 2-4% increase in operating expenses could be expected. However, in our current COVID-19 environment where businesses are struggling to control costs, properties should be looking to keep CAM budgets flat for the upcoming year.