This will ensure a more accurate and cost-efficient lease abstraction process. Another approach has been lease abstraction undertaken by the broker conducting a transaction. Some organizations have been attracted to the potential lower-fee, and the knowledge the broker has of the intricacies of the lease, as well as in-depth market knowledge. However, this creates an inconsistent approach as the lease abstraction process is only ever undertaken when a transaction is negotiated. In addition, if organizations use multiple brokers, there is an inconsistent approach in terms of methodologies and systems meaning there is a lack of standardized data across the portfolio. As a result of this ad-hoc approach and lack of cross-checking of information, the costs and risks could be a lot higher than implementing a robust lease abstraction process.
A key trend which has emerged and is now developing is the automation of the abstraction process. This new wave in technology is characterized by OCR scanning and web-based data change and management work of tools which allow highly effective cross-checking techniques, and error tracking and productivity statistics and automated workflow.
The benefits of using software for abstraction:
Abstraction has a fundamental role to play and has become a critical foundation for
- Cost saving initiatives
- Risk mitigation
- Strategic portfolio optimization