Commercial real estate leases with charges that are adjusted due to changes in a cost of living or price index are difficult and time consuming to calculate and manage.
The CoStar Real Estate Manager system includes advanced functionality that allows both landlords and tenants to quickly and accurately calculate indexed charge adjustments and reconciliations immediately after indexes are updated.
Easily maintain index data in CoStar Real Estate Manager
Direct navigation to all of your index information within CoStar Real Estate Manager makes maintenance easy and fast. By including links to index publication web sites on the system index pages, you can quickly retrieve the latest data you need for updates. In addition, the index information maintained within the CoStar Real Estate Manager system establishes a seamless audit trail.
Abstract indexed charge clauses for better reporting
Instead of relying on non-reportable tax fields, the indexed charged functionality within CoStar Real Estate Manager regiments the abstracted lease data into reportable data fields. This feature enables system calculations of both index adjustments and reconciliations.
Schedule charges with accuracy safeguards
CoStar Real Estate Manager uses the information you entered about indexed charges to produce intelligent defaults and data safeguards that ensure scheduled charges are entered accurately.
Proactive system notifications keep you informed
CoStar Real Estate Manager integrates a reminder system that notifies you when it is time to retrieve newly published index values and enter the update information into the system. These proactive system notifications ensure accurate knowledge of cost changes sometimes weeks before an invoice is received.
Update index data to initiate automatic system calculations
Once you make all needed updates to your indexed charges and approve the changes, the system immediately and automatically identifies and tallies all adjustable lease charges and will continually track your progress toward completion of all adjustments and reconciliations.
Adjust charges automatically
With one click of your mouse, the system saves you countless hours of work by automatically:
- Calculating all adjustments
- Calculating and scheduling all reconciliation charges
- Updating future charges to best represent ongoing lease obligations
- Updating a comment field if period minimums, maximums or lifetime maximums are encountered.
You can access detailed calculation documentation for any charge on demand. In addition, you always have the ability to override a calculation if, for example, you negotiate a better rate with your tenant, landlord or equipment supplier.
Interested in reading the full document? Click here.