Operating over 500 stores nationwide, this specialty clothing retailer has been attracting customers to its stores for over 100 years. Over the last five years, this retailer has experienced rapid growth and increased workload in their real estate department. In this time, the company’s real estate portfolio has matured and many store leases are up for renewal.
This retailer’s real estate team relied on multiple spreadsheets to manage its real estate portfolio, and all of its real estate-related leases and documents were maintained in a paper-based system. Further complicating the situation were complex percent rent calculations, involving specialized in-store services. Because some stores offer these services and others do not, individual stores may or may not incur percent rent expenses. Without a simple way to distinguish revenue sources for each location, the company was in jeopardy of overpaying their percent rent obligations, if any were owed at all.
CoStar Real Estate Manager began immediately by completing an initial file review and imaging of all real estate leases – all of this work completed in just 30 days. The team subsequently abstracted all 500 real estate leases while incorporating CoStar Real Estate Manager’s FASB-ready lease abstracting entry form in the process. CoStar Real Estate Manager then fully integrated the company’s internal business systems that manage accounting and store sales information so that all pertinent information is available in one location. The automated transfer of lease information to the accounting team, along with the automation of straight line rent and complex rent accrual calculations, have helped ensure accuracy and timeliness of rent payments and mitigated the risk of overpaying.
Costar Real Estate Manager’s reporting functionality provided executives and other decision makers at this company with much greater portfolio visibility and analysis than they’ve ever had before, allowing the company to successfully meet national expansion goals. The combination of software and services that make up CoStar Real Estate Manager’s one stop shop will help drive this customer’s success for another 100 years!
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