REoptimizer^® Blog

In 2006, the Financial Accounting Standards Board realized that the standard for lease accounting in the United States was significantly different from the system used in countries that follow the standards set by the International Accounting Standards Board. FASB started a long process of revising their lease standards to better conform with IASB standards. The new standards were finally developed in 2016, and they don't necessarily clear things up internationally. But they are changing the way the companies have to treat their leases from an accounting perspective.

The way your company approaches real estate is an excellent way to also approach your technology portfolio. Odds are that when it comes to real estate, you rent most if not all of what you occupy and, if you own real estate, it is because that property really fits your needs and you are sure that you want to make a long-term commitment to it.

In case you missed them, here are some of our top CRE articles from June:

In case you missed them, here are some of the posts from REoptimizer^® in April:

Corporate real estate departments frequently live in a world of constant execution. Leases get signed and expire, divisions close and open and market demographics shift for the good or bad. Along the way, many corporate property groups execute on what comes up but fail to take the time for long-range strategic analysis and planning, looking backwards and forwards. Here are three best practices that every company can execute on and, more importantly, use to reap real benefits.

Deciding to lease your space is just the first step in weighing your options for securing commercial real estate. There are a number of ways that lease deals can be structured, but generally, three main types of commercial real estate leases exist: net, gross and full service. Each type has its own distinct advantages and disadvantages, making it important that you understand the differences before you begin negotiating with a landlord.

Your monthly payments to your company's landlords aren't as simple as they may seem. Typically, commercial leases require you to pay a mixture of rent and expenses. Calculating both parts of the payment can be a complicated process, making them open to errors. Given that, somehow, landlords are more likely to make mistakes in their favor than in yours, it is wise to periodically do a commercial lease audit and make sure that you're paying what you should.

A commercial lease audit is a detailed comparison of what you are paying to what you should be paying. Typically, the auditor will look at what is billed to you in CAM and triple-net charges and compare them to the building's actual expenses through the lens of what your lease says you should be paying. If the landlord is overcharging you, you should be eligible for a refund. Here are some tips to help you through the process.