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January 29, 2018

Is the leasing process really all that important?

Yes.

Yes, your leases and the process around them are really that important.

It’s worth saying again: Getting your leases right is worth the effort.

Brokers and transaction management have a bad rap in many corners of the world. Part of it stems from how much money brokers make on commissions (hint: it can sometimes be large numbers). Part of it stems from experiences from bad leases or bad landlords. Some of it comes from a sense of “I can just do this myself.”

Your leases dictate much of your operational capability unless you choose to own certain facilities (which brings its own difficulties). If you mismanage your leasing process, it’s not an exaggeration to say that you could be costing yourself 20% or more of your total lease costs. This could come from missing option dates, putting yourself in bad negotiating positions, or putting your business at operational risk.

Having a person in charge of managing your corporate leasing process allows you to have consistency and predictability around these large current and future costs. Consistency and predictability are your friends in the lease management process.

Take the time to get it right because otherwise, you are simply giving money away.

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