The growth and adoption of automation in the real estate industry have intensified recently, especially since the pandemic. Many real estate businesses are taking their first steps toward digital transformation. With most business operations happening online, automated lease abstraction has become an efficient way to manage large portfolios.
Here are a few quick facts on real estate businesses adopting automation.
- 61% of real estate companies adopted one or more technology tools.
- 35% integrated the automated solutions and are still evaluating the market.
- Most of the adopted tools are for management purposes or system automation.
- 49% of companies have deployed automation for efficient business processes.
So, how exactly does automation help in lease abstraction?
Artificial Intelligence: The most disruptive and powerful technology is well-known for automation. Deployment of AI in lease abstraction has become popular among realtors and is an efficient solution to time-consuming lease document reviews and management processes.
The commercial real estate market is fast paced and complex. With the increasing growth and demand, services like automated lease abstraction become essential to deliver error-free results, reduce effort and save time.
Managing the entire portfolio requirements
Staying on top of the lease portfolio management is challenging for commercial real estate businesses. Lease administration is a backbreaking process, especially for real estate firms dealing with thousands of leases across different countries.
In a digitally transforming world, commercial real estate industry players must plan for result-driven strategies, determine goals, and run organized business operations to maximize lease values.
With dynamically growing market demands, companies should be able to access accurate lease data anytime to make informed decisions. Can manual lease abstraction provide instant access to real-time lease data? Here is where AI lease abstraction services come as a solution. Time and accuracy are their ultimate advantage over manual handling.
Automating lease abstraction allows businesses to utilize lease information seamlessly and delivers output in well-structured lease abstracts. FYI, lease abstracts are precise, comprehensive, and short summaries of lease documents featuring critical elements.
Quick access to accurate lease summaries can eliminate risks for real estate firms and help them efficiently manage accounts and lease-related operations.
Positioning lease abstraction at the core of portfolio management
Commercial leases are critical documents with numerous pages composed of legal terms. Extracting crucial information manually from these documents is formidable. Lease abstraction services or tools can be a right and efficient replacement for traditional methods as the industry grows dynamically.
Apart from the apparent benefits of gaining quick access to lease data, the AI lease abstraction can deliver highly accurate lease abstracts. These lease abstracts can be an elementary unit for associated lease administration operations. Thus lease abstraction services can act as the central nucleus for entire portfolio management.
Need for standardized lease abstracts
Lease portfolio management involves reviewing lease agreements and maintaining financial records. A small error during the lease administration process could affect the entire portfolio management and violate lease obligations.
By abstracting financial and non-financial clauses from leases and making the data available on-demand, structured lease abstracts can be helpful in time-sensitive situations.
Lease agreements come in various formats, drafted by professionals based on regional standards and languages. In certain instances, obtaining all information from lease documents is not feasible.
Having a consistent lease abstract template for all types of leases ensures minimal errors and makes it easy to compare with other leases and results in quick decision-making based on ROI.
AI’s role in lease abstraction and administration processes
Artificial intelligence helps CRE businesses derive impactful results when employed for lease abstraction. Simply put, lease abstraction is finding key details from multiple lease pages and formatting the obtained data into a lease abstract.
With the programming logic and natural language processing (NLP) technique, AI in lease abstraction can independently deliver lease abstracts by gathering every word, clause, and sentence from several lease documents with almost 95% accuracy.
AI technology in lease abstraction can help track and abstract information from multiple leases in a single step, which is much better than manually reviewing the document.
The accurate lease abstracts delivered by automated lease abstraction services can streamline and simplify the lease administration process effortlessly.
Meeting the compliance requirement and accounting for large portfolios can be a tremendous challenge for commercial real estate companies. Automated lease abstraction platforms or services have been upgraded and equipped considerably to meet lease data-related requirements.
Hence, outsourcing lease abstraction services to a renowned service provider or investing in lease abstraction software is necessary for real estate companies to stay on top of their lease portfolios. If you are a real estate service-providing company and need lease abstraction support, feel free to contact us.