In our last article, What does a managed service look like in the legal world? we described a managed service as the practice of outsourcing to an external legal service provider the responsibility for managing a certain workstream for the purpose of improved operations and reduced budgetary expenditures. Let us now examine how the managed service model can operate in the world of commercial leasing.
While every client has different program requirements, a mature managed service model for leasing services typically has the following features:
In addition, a managed service model may make use of various technologies to enhance the quality of output and efficiency such as AI, document automation, intelligent document review tools and data management systems. At Beyond Leasing, we also offer data analytics tools that help the client gain valuable insights from large volumes of data.
In our experience, property owners have much more control over the leasing process and can oftentimes dictate the documentation used for the location. As a result, there is less variation in the documents which can lead to greater ease the implementation of the model. Property owners usually have a discrete suite of documents and well-established step downs. This means that the implementation of the managed service can be easier.
On the other hand, most tenants are required to be reactive, having to make do with landlord-produced forms which can vary widely from landlord to landlord and even regionally. While this can lead to an increase in the cost of lease negotiations, a managed service can provide for significant cost reduction and greater consistency.
Very rarely do our clients come to us with a fully developed leasing program that can be transformed into a managed service. For this reason, our implementation services can assist our clients in making sure all the fundamental building blocks are in place to deliver the best results. To this end, we have developed a program which allows us to take the measure of our clients' state of health in regard to leasing processes. This is often the first step in the development of a managed service program for our new clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
