COMMERCIAL LEASE ABSTRACTION- FUNDAMENTALS AND IMPORTANCE

1. COMMERCIAL LEASE ABSTRACTION- FUNDAMENTALS AND IMPORTANCE Leases are comprehensive legal contracts between the lesser and the lessee which may be running into hundreds of pages in different formats. Here comes the need for lease abstraction as many companies choose to go through the lease abstraction process instead of constantly going back to lease documents. Lease abstraction contains the summarization of all the relevant information and translates all of the different lease formats into a single abstract form that a company's team needs to manage a real estate portfolio. Lease Abstraction Services makes it convenient and cost effective for the reviewer of the lease document making it more organised and manageable. Abstracted document from a lease can be quickly accessed for obtaining information relating to any business points. The process of lease abstraction might seem to be time- consuming but it actually saves great deal of time in the long run as one does not require going back and forth through the whole of lease documents which is potentially time consuming and reduces the risk of human error that can occur reading those lengthy documents. The value of the abstracts is further increased by computerizing the documents, especially when they are used in conjunction with workplace or facilities management software. Thus in simple terms we can say that lease abstraction is the process of making things simple and precise. A lease abstract is a summary of specific and crucial information which makes useful data available to review the key point conveniently from an extensive lease document. The lease abstract acts as a condensed version of the original lease document. A lease provide details of important data like the date of commencement, total area that is to be leased, term of the lease, subletting options, the rental amount, provisions of holdover, etc. which are very important to all leases. However most of the content of a lease is not relevant and is not needed on a daily basis. The content of a lease can vary from couple of pages to hundreds of pages as per the requirements of the Landlord and the Tenant, and to flip through hundreds of pages looking for the exact information can be a tedious and a time consuming task. Thus abstraction reveals only the required information vital to the business and hides the unnecessary data. The abstract summarizes important information from the lease and tells the reviewer where to look for detailed information so that all the crucial information is available at one’s fingertips resulting in saving precious working hours. A Lease Abstraction Company is ideally served as a road map that helps in navigating the lease document. Commercial leases usually contain standard clauses, like alterations, damage, late charge, default, destruction and estoppel. Each clause has precise details that need to be extracted from the lease document to give shape to the contents of the abstract. Understanding commercial leases is an important so as to understand what information is crucial and needs to be extracted.

2. Properly abstracted commercial leases assist the leasing agents, lease administrator, and maintenance or property manager who can refer to important clauses of a particular lease without needing to continually go through the entire document besides make readers (such as property investors, lessees, and lenders) quickly understand and find critical lease data and information sans legal jargons. Last but not least, providing a lease abstract rather than a full lease text also saves time and money for those who are performing due diligence on the property for a potential sale or acquisition. Therefore it becomes vital that each lease is studied thoroughly and then abstracted.