Why Lease Administration is Here to Stay

Tessa Author

Managing a lease portfolio is a fun and impactful endeavor; however, some administrators question whether it's a sustainable career choice.

Lease administration isn’t going away. It’s only getting more exciting!

It’s the beginning of the year, so it’s natural to reassess your career goals and aspirations. And, if you’re a lease admin professional working with fear of losing your job to Artificial Intelligence (AI) or outsourcing, I’ll be the first to say that opportunities to help tenants are only expanding for the skilled lease administrators-analysts, and it’s worth sticking around.

Actually, this is the most excitement I’ve seen in my 13 years of lease management. The new lease accounting standards catalyzed upgrades to how the lease data is collected, stored, and maintained for many companies. That, in turn, created growth opportunities for people who collect, analyze, and manage leases.  

Why such enthusiasm about Lease Admin? Just wanted to bust a few premature concerns and spotlight the unsung heroes of the real estate operations while making sure you don't dismiss a terrific opportunity for the wrong reasons.  

Is the threat of AI taking over a lease admin’s job real?

Last year, during a happy hour with a few friends, one of them asked me if she should consider a career switch, citing her concern that the AI could replace her role as a lease admin. Another one nodded in support, saying that’s why she went into property management instead of another lease admin job.

Needless to say, I was shocked. Such an idea has never crossed my mind. The thought that artificial intelligence could replace a skilled lease analyst is funny, mildly put.  

So yes, I laughed and reassured them that such a thing isn’t going to happen for a few reasons and, in a botched attempt to collect some social proof, I even posted a LinkedIn poll to see if lease admins really thought that their jobs were in jeopardy under threat from artificial intelligence.  

The response is NO; artificial intelligence isn’t widely available and cost-prohibitive for most companies to replace an entire lease portfolio management function.  

Of course, there are parts of the functions where I welcome the automation, like abstraction. I’m a numbers girl myself, so if there’s tech available to help with data capture, I’ll say “Yes, please!” every time.  

Unfortunately, it’s still quite pricey and requires a human touch to validate data accuracy. In short, it’s decades too soon for AI to replace lease analysts.  

Please, don’t think I’m underestimating. Doc Brown thought we’d be flying in cars by 2015, yet here we are.  By the time AI gets to lease admin, we’ll be long retired.  

Why is it good to be a lease administrator in 2021?

Now that you know that your career choice is safe, here are a few reasons why it’s worth sticking around in the lease admin world in 2021 and beyond:

• It’s a critical business function for companies that pay rents. Not only is it a significant expense that must be captured accurately for budgeting and financial reporting, but data about leases also helps to drive the company’s strategic decisions.

• The job never stops. Although more office professionals are working from home, industrial real estate is booming. Lease analysts abstract it all - lease for new space, early termination agreements, downsizing amendment, and so on. And, whether it’s for ten leases or 100, paying the rents still needs to be done.

• The new lease accounting standards call more attention to the lease data’s accuracy and the process that supports the function. In reality, many companies don’t have a strategy around their lease data and will be looking to hire specialists to drive the organizational initiative. They’ll be looking to upgrade the “that’s-how-we’ve-always-done-it” cumbersome processes to simple and streamlined.

• The role enables you to positively impact people around you, from saving someone from losing their job by catching errors in their work via peer-review to helping a nice landlord by re-issuing a failed payment, just to name a couple. In addition to having the power to make people’s day, there’re plenty of opportunities to test your problem-solving skills, and something new and exciting happens every day.

• Skills gained in lease administration translate into many other operational functions. Invoice review is an easy example - if you can review a lease invoice, you can easily replicate the same for a supplies order.  

However, lease admins do so much more: project management, contract interpretation, building and maintaining productive relationships, just to name a few of my favorites. These skills will serve you long after you move on to the bigger and better things.  

Without a tenant? Don’t despair - make 2021 your pivotal year!

These are challenging times for many businesses, and you may find yourself without a tenant temporarily, by choice or otherwise.
You’ve got options, just need to figure out your objectives - identify what you ultimately want to do. Easier said than done, yet start by answering the question, “Who do I want to become?” Then, decide on a few actions to do now (this year) to set yourself on the path to fulfilling that dream you have.  

When I was in the vendor risk management group, which was a fantastic experience that opened my eyes to the importance of business continuity, I realized I missed helping people, making small impacts daily. That’s when I felt I was ready to get back into lease admin, yet getting my old job back wasn't an option. Luckily, my mentor at the time asked a pivotal question:  

“What do you want to do? Do you want to work for the bank, or do you want to help tenants?” Because only one of those options required me to continue working for my employer.  

Making lemonade during “transition time”  

The answer for me was easy, and it laid the path to this very moment. I found a temp lease admin job with a real estate company in NYC, sublet a room from a friend of a friend, and moved six weeks later. As they say, “the rest is history,” yet my goal here is to ignite you to figure out what YOU want and commit to the change.  

• Change happens, and sometimes it’s unexpected, which sucks. Yet, embracing it as a “necessary evil” for growth could offer a different perspective. Stay optimistic about the change and view it as an opportunity, rather than a loss, for an easier transition. For many of us, there are times when our attitude is the only thing we have control over, so choose to stay positive. For example, celebrate the small accomplishments just as much as the big ones. The job never stops. Although more office professionals are working from home, industrial real estate is booming. Lease analysts abstract it all - lease for new space, early termination agreements, downsizing amendment, and so on. And, whether it’s for ten leases or 100, paying the rents still needs to be done.

• Skilled lease analysts are always in demand; they may be paying rent for less space, but many companies are still paying rent. It may also be easier to find a job now as quarantine has opened many companies to remote employment. You’re not location-bound anymore.  

• Proficiencies gained in Lease administration can be applied to contract management, financial analysis, lease audit, transaction management, and many other operating functions. Have the courage to pursue roles outside of lease admin, which will give you a better understanding of the business process. (Consider it an exploratory mission).

• Investing in additional training to enhance your skills while looking for a new job will help pass the time with purpose. For success in lease administration, I recommend advancing your Excel (or Google Sheets) capabilities as a technical skill, while practicing written communication and time management are my picks for soft skills. 

The challenges of the post-2020 business environment, the benefits of technological tools unprecedented in use, and the pressures of the new financial reporting requirements call for the evolution of the administrator’s role.    

In 2021, I wish you to embrace and step into the role that answers the call and become a creative problem-solver, capable of contract interpretation, financial analysis, project management, and building sustainable relationships that take your career to the next level.