Issue link: https://resources.tangoanalytics.com/i/1465847
STRATEGIC STORE LIFECYCLE MANAGEMENT SMARTER STRATEGIES. FASTER EXECUTION. I www.tangoanalytics.com I PAGE .4 Lease Information is Strategic, So Why Not Treat it That Way? In fact, once a retailer or restaurant company has an execut- ed lease, they essentially don't think of it as anything beyond a contract with terms to comply with. In truth, lease adminis- tration is still generally treated as a back office function - the requirements of people doing these jobs are generally overlooked, and the incredible value of lease information is discounted. Current solutions reflect this thinking, and they ignore the value and importance of lease information in strategic real estate decision making and occupancy cost management. Most restaurant and retail companies fail to properly leverage their lease data to inform real estate strategy decisions or improve new lease and lease renewal negotiations – and existing transactional systems are partially to blame. While retailers and restaurant companies have started to recognize the value of analytics for the front end of the real estate process – including market planning and site selection – they are missing an opportunity when it comes to lease information. Currently, no systems take lease data and feed it back into the real estate strategy process to inform decisions. In fact, true integration across the entire real estate lifecycle – which many vendors claim to support but don't – means that leases are both a consumer and provider of critical real estate data. Leases consume data to ensure compliance to contract terms and conditions, but should also provide data to help inform renewals, market optimiza- tion and site selection. True integration with a backbone of predictive analytics means that the decision on whether or not to renew a lease can now be made in the context of store performance, relocation opportunities, changing competitive dynamics and overall market strategies and goals. And access to these rich analytics will enhance retailers' ability to negotiate by empowering them with data focused on market realities and incorporate past behavior of specific landlords. Existing lease administration providers cannot facilitate market level strategies or deliver rich negotiation tools because they do not have predictive analytics and modeling, period. By focusing on strategic lease analytics and effectively leveraging key lease data, retailers will make better real estate strategy decisions.