Retail leases are one of the most complex lease types. They are vast, have very specific clauses which are often not seen in other lease types (percentage rent and right to audit are some examples), and more often than not, retail businesses have multiple locations. The complexities of retail lease abstraction increase if the leases span across different geographical locations.
If you are a retailer with a lease portfolio that extends beyond the US borders, you also need to consider your lease abstraction team’s/vendor’s capabilities in terms of language translation. Global lease abstraction projects require robust language translation capabilities and the ability to understand the various regional nuances. For example, not all English leases are the same. There will be differences in the language and their interpretation from region to region, such as between the US and UK. So, while the language is the same (English), regional nuances and knowledge of the legal terminologies pertinent to the country come into play when abstracting the lease.
Also, when approaching multilingual leases, it is generally more economical to abstract the lease in English directly rather than abstracting in the local language and then translating the abstract to English. This is because the cost of translation of the entire lease will be much higher due to the sheer volume of information. Sometimes, it may be tempting to rely on online translation tools as prima-facie they may seem like an economical choice, but they bring along with them, concerns about data security and breach of confidentiality.
It makes sense to partner with a trusted and experienced, global retail lease abstraction service provider to get your multilingual retail leases abstracted. Such a vendor will be able to bring some degree of standardization and uniformity to your multi-location, multilingual leases, even if they vary owing to their geographical locations.
Rebolease.com, powered by RE BackOffice, Inc., is a premier provider of lease abstraction, administration, audit, and accounting services. Headquartered in Pittsburgh, PA, we are a global boutique firm, providing high-quality services to top-tier clients across industry verticals, covering every type of lease and on any lease platform. We are proud to be a trusted partner, for 15+ years, to leading retailers, REITs, property owners/managers, and corporate accounts seeking strategic advantage. All client projects are performed in-house.