In 2010, CoStar consolidated more than 5,000 real estate and equipment leases into a single software solution to perform asset level lease accounting for this leading manufacturer and retailer of flooring materials.
This Fortune 500 company is one of the largest manufacturers and distributors of residential and commercial flooring in the U.S. and has a portfolio of more than 5,000 leased assets including almost 400 locations and more than 700 trucks.
Before consolidating data into one solution, the company’s lease data was stored in 33 separate spreadsheet documents. The lack of organization prevented total control and confidence in data accuracy. As a result, the company faced challenges on a daily basis to effectively understand and manage their lease obligations.
In 2010, the company selected CoStar Real Estate Manager to consolidate its real estate, equipment and other leased assets into a single software solution. To facilitate a smooth implementation, CoStar professionals consulted with each business division to identify the key data requirements. CoStar’s Lease Services team then abstracted the remaining pertinent data and audited all imported data. More than 5,000 leases were consolidated and abstracted into the system in less than four months, creating instant online access to all data at the asset level by all information stakeholders. The solution was then integrated with the customer’s multiple ERP systems, enabling nightly vendor integrations and the ability to create expenses and check payment history to landlords and suppliers from one database.
The company can now make better management decisions based on accurate lease information from a single source that represents the entire real estate portfolio and equipment inventory at the individual asset level. Integration with multiple ERP systems eliminated information silos and allowed for the creation of accurate and timely reports. Abstracting and auditing all leases empowered the company to track critical dates and the plethora of individual asset related schedules that relate back to master equipment agreements. The company is now set up for compliance with current financial regulations as well as the new FASB and IASB lease accounting standards.
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