How RE Backoffice assisted America’s Largest Provider of shared Wireless Infrastructure manage their active Tower Agreements better after a Merger

REBO LeaseAbstraction

The 6-month long project involved abstracting, standardizing, and updating key data points from the tower licenses acquired as a part of the merger, into the client’s database.

WHO WAS OUR CLIENT? 

The client was the nation’s largest provider of shared wireless infrastructure, collaborating closely with wireless carriers, communities, governments, and local property owners to provide access to wireless telecommunication infrastructure. The client manages and provides telecom site services to approximately 40,000 cell towers comprising approximately 91,000 installations and has a key presence in all the major markets in the US, with approximately 71% of their towers located in the top 100 markets. 

WHAT DID THEY NEED? 

The client had recently acquired another leading telecom company and approaches to managing the active tower license agreements were very different between the two companies. The client wanted the critical information in the licenses of the newly acquired company to comply with its existing approach. The client already had a database and were expanding it to include key data points from the newly acquired licenses. These key data points related to the licenses acquired as a part of the merger had to be abstracted and updated in the client’s database. The key data points included accurate information about the validity of the communication tower permits and information on the expiration and renewal dates of the licenses related to the communication towers located across the United States. 

This was accomplished in two phases, each phase treated as a separate phase: 

  • First, where they wanted 10,000 cell tower permits analyzed, abstracted, verified, and updated in their native cell tower permit management platform and; 
  • Second, they wanted RE BackOffice to abstract 10,000 cell tower licenses and their related service level agreements. The timeframe for the first project was 90days, while the second project was to be completed in 5 months. 

PROJECT HIGHLIGHTS

How RE Backoffice added value to the client 

  • RE BackOffice deployed a team of 50 experienced lease analysts on the project 
  • For ease of communication, there was one dedicated project manager who acted as a single point of contact for the client. In their absence, a dedicated assistant project manager took over the role to ensure the project progressed smoothly, without deviating from the desired quality and timeline 
  • To ensure the client’s quality goals are met effectively, RE BackOffice put an objective, 3-tier quality control process which had a team of senior analysts verifying 100% of the output 
  • The documents provided by the client weren’t organized as per the cell tower sites. As a part of the document management optimization process, RE BackOffice scrutinized each document to identify the cell tower it represented and uploaded them in the client database for the concerned business unit 
  • RE BackOffice custom-built ad at a platform to suit the specifics of the client’s project. This platform consisted of all the data fields that the client required abstracted 
  • RE BackOffice’s team would update the abstracted data onto the platform which then allowed them to export the abstracts as a single excel file—the way the client wanted 
  • RE BackOffice also identified the patterns linking the Master Level Service Agreements (MLAs) to the Service Level Agreements (SLAs) which played a key role in shrinking the timeline of the project by almost 30%

END RESULTS

RE BackOffice successfully completed the project within the said timeline and with 100% accuracy and helped America’s largest provider of shared wireless infrastructure, 

  • Proactively conduct analysis on upcoming renewal options and/or final term end dates and respond in a timely manner with the potential to prevent unforeseen future terminations 
  • Ensure customer retention and satisfaction 
  • Communicate accurately and efficiently with their customers 
  • Anticipate change and associated short/long term impacts and take the necessary steps well in advance 
  • Organize their cell-tower licenses, permits, and other related documents better, which, in turn, improved their overall operational efficiency on the lease management front

To learn more about our tower lease abstraction services, please click here or download our Tower lease abstraction brochure. 

The importance of ongoing lease management

 

If lease portfolio management were to be compared to anything, it wouldn’t be wrong to say it is a marathon. But, a lot of organizations tend to treat it like a sprint race. The only time leases get the attention they deserve is at the time they are signed. When a new lease is signed, organizations make the effort to get it abstracted and entered into their lease portfolio management systems and more often than not it stays put there until termination or renewal comes up. However, this can result in significant economic losses. Let’s look at why consistent, ongoing lease management is important.

You may be overpaying

One of the most important reasons as to why you should be reviewing and updating your lease portfolio is to identify any inconsistencies in CAM expense billing, rent hikes and other operating expenses that the Landlord may be imposing on you. 

You may miss out on various benefits that are not obvious

If you don’t service your leases regularly, you run the risk of overlooking important dates and options that could be beneficial to you. Examples include notice periods for termination, renewal, expansion and the right of first refusal. Keeping an eye on these dates and executing your options at the right time can help you get a good deal on your existing leases.

Repetitive errors may be causing you losses

If your initial abstract has errors, or if you don’t reconcile your operating expense, CAM charges, rent increase and other payments periodically, you run the risk of letting the errors embed into your leases. In cases where the rent/operating or CAM charges increase based on the preceding years’ value, you will erroneously end up paying a lot more than you should.  

You may be miss taking advantage of critical dates and clauses

If you don’t service your leases regularly, you run the risk of overlooking important dates and options that could be beneficial to you.

At some level organizations are aware of the importance of ongoing lease maintenance, but fall behind on their lease portfolio management due to lack of resources. In such scenarios, an experienced and trusted lease administration vendor can help. They can work independently or support your existing lease administration resources to help you stay on top of your lease portfolio management requirements. Plus, their expertise can add value to your internal lease administration process. 

RE BackOffice is a strategic partner providing end-to-end lease administration and accounting services, including lease audits. We offer scalable, affordable and accurate lease accounting and administration services to optimize your lease portfolio and related processes. Please contact us today to learn more

Case Study: RE BackOffice helps America’s leading mid-sized retailers of the largest communication brands to save more than $140,000 annually with effective and efficient Lease Administration Services

 

This week we share a case study that discusses how RE BackOffice helps America’s leading mid-sized retailers of largest communication brands to save more than $140,000 annually with effective and efficient Lease Administration Services. Some of the key challenges faced by our clients include-

  • High cost of hiring, training and retaining lease administration resources
  • High rate of attrition affecting lease portfolio management and timely updates
  • Financial losses due to missed opportunities and underutilization of assets resulting from decentralized, fragmented and inaccurate lease data.
  • Lack of qualified resources to conduct regular audits to identify discrepancies and possible cost savings

Find out how RE BackOffice helps these clients overcome these challenges with its efficient and effective lease administration and accounting services.

Download Case Study

About RE BackOffice
RE BackOffice is a strategic partner providing end-to-end lease administration and accounting services providing scalable, affordable and accurate lease accounting and administration services to make your lease portfolio management more efficient. Contact us today to learn how you can leverage our experience and expertise to drive revenue and cost savings by optimizing your lease portfolio management process.

Is your lease abstraction set-up accurate?

 

You know how important it is to keep your lease portfolio up-to-date. You probably even have resources in-house to help you stay on top of your lease portfolio. But, what about accuracy? Are you capturing the right data fields? Any investment in your lease administration process won’t pay off if your base data is incorrect. So, how do you go about ensuring your core lease administration process is on-track? Here are a few things to consider-

Your lease abstraction template

You know lease abstracts play an important role in helping you understand the key elements of your leases. Plus, they come in handy when you need quick access to the critical lease elements at the time of strategic decisionmaking. However, you need to ensure that your abstraction template captures all the relevant information. While some core fields such as rent, options, key dates, etc., are needed irrespective of what industry you belong to, there may be fields that are important for your business or industry in particular. Apart from such fields, there may be certain, less common clauses in some leases that must be captured. So, the first step to ensuring you are capturing the right data is a) Being able to identify what data matters to you and b) Having a template that caters to your needs by capturing that information.

How is the data captured?

Once you have the right template in place, the next step is to set guidelines for data capture. You want the data abstracted to be complete, yet concise. Your lease abstract should read like an abstract, highlighting the key elements of a particular clause. It shouldn’t be a copy-and-paste exercise, including all of your lease terms into your template. This approach defeats the purpose of lease abstraction. 

What role will technology play in your lease abstraction and administration process?

At the outset, you need to be clear on the role technology will play in your lease portfolio management process. There are automated lease abstraction software tools in the market, that extract key information from leases and populate them onto a predefined template. While automating the lease abstraction process can offer considerable benefits in terms of lower turnaround time and resource costs, it cannot completely replace the human element. Lease abstraction and administration requires analysis of leases and related documents to arrive at accurate and most-useful data sets to help you drive critical business decisions concerning your real estate portfolio. 

An experienced lease administration vendor who specializes in the initial process setup can help you ensure your lease administration and abstraction processes are set up properly. They can add value to your lease portfolio management process by

  • Conducting a review of your existing data capture mechanisms and templates for accuracy and usefulness. 
  • Evaluating your current process and cadence and offering guidance on how you can make it more efficient
  • Suggesting changes to your existing lease abstraction templates to help you optimize your existing templates

About RE BackOffice

RE BackOffice, Inc. is a premier provider of strategic commercial real estate back-office functions, including lease abstraction, lease administration, and real estate marketing services. Since 2006, REBO has been a trusted partner to top-tier commercial real estate companies, retailers, and service providers seeking a strategic advantage. Whether managing a portfolio of leases or providing graphic support through stacking plans, renderings and websites, RE BackOffice’s team of professionals is dedicated to delivering high-quality services and optimal ROI to our clients. At RE BackOffice, your back office – is our front office.