Lease Accounting Software with CoStar Commercial Real Estate Market Data for Current FMVs
CoStar’s lease accounting software helps companies evaluate the ASC 842 lease classification tests...
The Diagnosis – Significant Survey Findings
In addition to the disappointing results for real estate information confidence, other categories have similarly flat-lined:
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Prevalent throughout the survey this year is the plea for systems integrations. This ability has far-reaching ramifications for companies who understand the importance and value of their real estate and the role their portfolios play in achieving strategic objectives.
When systems are not integrated, respondents commented about the negative impact this causes to their day-to-day tactical work. Some of these included inabilities to pay rents, lack of data transparency, work redundancy, lack of standardized processes and adverse amount of time required to create ad-hoc reports.
Systems integrations are not a cure-all, but if you consider that situations such as lack of data confidence and reporting complexities are symptomatic of stand-alone, non-integrated business systems, then stable and seamless systems integrations can help alleviate much of the day-to-day paid currently being experienced by real estate professionals.
Top two inhibitors preventing better real estate management processes
The top two inhibitors preventing companies from establishing better real estate information management process remain unchanged for the third consecutive year. Lack of budget has been the top inhibitor for the first two years of this survey – in 2010 and 2011 – but has fallen rapidly as companies saw the economic recovery take hold. Still, internal challenges are back up at 51% of respondents indicating they have trouble overcoming existing organizational structure and process to make headway at implementing advanced methods. To view corresponding data, click here.
The Prognosis – Survey Summary
A lot of work lies ahead for teams who work with real estate data every day – to increase the quality of all that data and to do it quickly to prepare for the FASB lease accounting changes due to be published in Q4 of 2015. Teams still struggle to compile all the information they need for executive reports due to the lack of integrations with other business systems. It is no wonder, then, that the number of companies that are not prepared for FASB has reached an all-time high at 76%.
Time is running short and we could be seeing signs that organizations are starting to implement advanced processes and technology with aggressive deadlines. The FASB lease accounting changes are undoubtedly a big driver to this flurry of activity, but we fear so many companies are late in getting started.
Next year’s survey results will be compelling indeed as we see if and how the then-published FASB lease accounting standard forces renewed strength in real estate information confidence.
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