Why Lease Administration Matters: Data, Risk, and Flexibility in Corporate Real Estate

Lease administration is often viewed as a back-office responsibility, but in practice, it underpins risk management, financial accuracy, and long-term real estate planning. As corporate real estate portfolios become more complex and accounting standards more demanding, companies that treat lease administration as infrastructure, not clerical work, are better positioned to control costs and make informed decisions.

Below are 10 reasons lease administration deserves greater attention from senior leadership.

1. Lease Administration Is a Risk Management Function

Poor lease tracking creates exposure that is often invisible until it becomes expensive, and that can happen on a number of fronts:

• Missed notice and option dates
• Incorrect rent escalations and recoveries
• Untracked landlord or tenant obligations
• Increased legal and compliance risk

2. Accurate Lease Data Drives Better Decisions

Real estate strategies are only as good as the data behind them for influencing decision-making, such as:

• Portfolio optimization and consolidation planning
• Site disposition and exit analysis
• Capital planning and long-term forecasting
• Executive and board-level reporting

3. Accounting Standards Elevated Lease Administration

Lease data now has direct financial statement implications that make staying on top of the data more important than ever:

• ASC 842 and IFRS 16 compliance
• Right-of-use asset and liability accuracy
• Audit support and internal controls
• Coordination between real estate and finance teams

4. One Size Does Not Fit All

Every organization has unique requirements that software must support.

• Portfolio size and geographic footprint
• Asset mix (office, industrial, retail, specialty)
• Internal staffing and governance model
• Reporting and integration requirements

5. Software Should Serve the Client, Not the Broker

Some firms push proprietary systems for operational convenience, but there are a number of downfalls to that approach:

• Broker-driven software selection limits choice
• Platforms may not align with client needs or scale
• Costs can exceed the actual value delivered
• Flexibility is often sacrificed for standardization

6. Data Ownership Is a Strategic Issue

Where your lease data lives matters more than many companies realize:

• Broker-controlled systems limit portability
• Changing service providers becomes disruptive
• Historical data can be difficult to extract or migrate
• Independence in data housing preserves negotiating leverage

7. Independent Platforms Preserve Flexibility

An independent system allows companies to adapt over time and offers several benefits:

• Freedom to change brokers without disruption
• Ability to rebid or restructure services
• Long-term continuity of data and reporting
• Reduced dependence on any single vendor

8. Best-in-Class Does Not Mean Most Expensive

Overbuilt systems often create unnecessary complexity:

• Excess functionality that goes unused
• Higher licensing and implementation costs
• Greater training and administrative burden
• Misalignment with actual operational needs

9. Technology Requires Process and Governance

Software alone does not solve lease administration challenges; there must be a strong system of controls in place:

• Defined ownership and accountability
• Standardized data governance policies
• Regular audits and quality control
• Integration with accounting and financial systems

10. Lease Administration Is a Long-Term Decision

Lease data is relied upon daily, not just at renewal, so it’s important to weigh the pros and cons of a strong lease administration protocol:

• Decisions compound over time
• Poor systems create long-term inefficiencies
• Strong foundations support future growth
• Independence enables strategic optionality

At Site Selection Group, we take a software-agnostic, client-first approach to lease administration. Rather than pushing a single platform, we help clients select and implement the solution that best fits their business—balancing functionality, cost, and independence while preserving long-term flexibility.