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What is Lease Abstracting?

Lease abstraction is the process of summarizing key information from lease agreements into a simplified, easy-to-read summary. This summary highlights vital details, guiding users to more in-depth data as needed and documenting all financial aspects relevant to property investors or lenders.

The purpose of lease abstraction is to enable stakeholders to quickly understand the critical terms, financial obligations, and important dates within a lease agreement without having to comb through the entire document.

Lease abstraction serves various roles in the real estate and finance sectors by providing a streamlined summary of real estate lease agreements and equipment lease agreements for easier analysis and decision-making. Here is a list of company roles that utilize lease abstraction:

  • Commercial Real Estate Managers and Property Managers utilize it to oversee lease terms and obligations, ensuring compliance and optimizing property operations.
  • Real Estate Investors rely on lease abstraction to evaluate potential investments and monitor existing portfolio performance.
  • Financial Analysts and Portfolio Managers use abstracts to assess financial health and risks associated with lease agreements in their investment strategies.
  • Legal Professionals specializing in real estate refer to abstracts for quick access to contractual obligations and terms.
  • Asset Managers leverage lease abstracts to maintain accurate records and enhance asset performance.
  • Corporate Real Estate Executives depend on abstracts for strategic planning and management of corporate lease portfolios.
  • Leasing Agents use abstracts to facilitate lease negotiations and renewals by having readily available key lease terms.
  • Accountants and Auditors, especially in real estate or adhering to lease accounting standards, use lease abstraction for accurate financial reporting and compliance.

Here's a general breakdown of the lease abstraction process:


  1. Reviewing the Full Lease Document. The process begins with a comprehensive review of the entire lease agreement. It’s important to read each clause carefully to understand the financial information and obligations and rights of each party.
  2. Identifying Key Information. As the document is reviewed, the abstractor identifies and flags the essential clauses, terms, and conditions that govern the lease relationship.
  3. Extracting Essential Data. After identification, the relevant data is extracted. This involves summarizing complex legal language into plain terms while retaining the lease's intended meaning.
  4. Organizing the Data. The extracted data is then organized into a standardized format. This often involves categorizing information under various headings such as financials, legal, and operational details.
  5. Creating the Lease Abstract. The organized data collected is included in a lease abstract. This document will usually be a few pages long, depending on the complexity of the lease.
  6. Review and Verification. The abstract is then reviewed and verified for accuracy and completeness. It may be compared against the original lease to ensure no critical information has been missed or misrepresented.

Updating and Maintenance. Lease abstraction is not a one-time task; abstracts need to be updated as amendments to the original lease occur, or as triggered by specific events detailed within the lease.

Lease agreement abstracting will include legal, financial, and, business relevant information like the names and contacts of the lessee and lessor, the specifics of the lease term including commencement, duration, extensions, and renewals, as well as financial terms like rent amount, rent increases or rent escalations, payment schedules, and any increment clauses form the core of the abstract. It also highlights the specifics of the premises, including its size, location, square footage, and permitted uses, along with who holds responsibility for maintenance and repairs.

Insurance requirements, compliance with laws and regulations, sublease conditions, and terms of termination are also summarized. Notably, the abstract pinpoints critical dates for renewals and compliance with certain lease obligations, as well as any rights the lessee has to renew, purchase, or expand. It doesn't overlook details on rent escalation and clearly outlines what constitutes a lease default, including the remedies available.Any special provisions unique to the lease, such as rights of first offer or exclusivity, are also captured.

The lease abstract isn't a static document; it's updated regularly to reflect any changes from amendments or specific events detailed within the lease. This dynamic document serves as a vital tool for stakeholders, enabling efficient management and informed decision-making regarding the company's leasehold interests.

By accurately abstracting these key attributes, stakeholders can gain a clear and concise understanding of the lease agreement without the need to navigate through complex and lengthy legal documents. The abstract provides a tool for better management and decision-making regarding a company's lease portfolio.

iLease Lease Abstraction

iLeasePro offers comprehensive lease abstracting services that streamline the management and analysis of lease agreements for commercial real estate leases and equipment leases. By condensing critical lease information into easily digestible summaries, iLeasePro enables its users to stay informed on important information such as financial terms, square footage, security deposits, and critical dates. This service saves time and facilitates informed decision making by highlighting key lease data, including cash flow and rent amounts for commercial leases. This four-step process ensures that you receive tailored abstraction services, capturing essential financial information to optimize lease management and performance.

Proposal Process

  • iLease Management works with you ("Client") to understand high level requirements of proposed abstracting project
  • Key information captured will be: Number of Leases (Real Estate / Equipment), key data to abstract, format required of deliverables and due date timeline
  • iLease Management provides Client a proposal Statement of Work leveraging its 4-Step Lease Abstracting Process

iLeasePro 4-Step Lease Abstraction Process

  • Requirements Definition

    • iLease Management works with Client to define custom requirements
    • Key information captured will be: Number of Leases (Real Estate / Equipment), key data to abstract, format required of deliverables and due date timeline
    • Client is assigned a Lease Abstraction Project Lead to work through the 4-Step process
    • Client provides a point of contact ("POC")
    • Agree to schedule of progress update meetings through the duration of the project
    • Project Plan outlining deliverables and milestones delivered to client POC
  • Acquire Lease Information to Abstract

    • Client provides lease documents, rent roll, and additional information by uploading to the iLeasePro portal or providing document access through their own secured shared drives Dropbox or Box.com, saved on a compact disc (CD) or hard copy version and mailed directly to iLease Management LLC
  • Lease Abstracting

    • Lease documents are reviewed in detail by the iLease Management abstracting experts
    • Missing document report is shared with the client, if needed
    • Sample abstract is shared with the client
    • Key data is summarized in clear and concise abstracting language into final deliverable format
    • Progress update meetings to review Project Plan between the iLease Project Lead and Client POC occur throughout the duration of the project
  • Final Deliverables

    • Abstracts are delivered in the format as defined during Requirements Definition
    • Final abstract deliverables directly entered in iLeasePro, lease management solution of client choice or delivered in a Microsoft Word/Excel document or in an Access database
    • iLease Lease Abstraction Project Lead will followup with Client to ensure project completeness

Begin the Abstracting 4-Step Process

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