Sporting goods giant scores big on lease data transformation

A leading sports retailer sprinted ahead of the competition by partnering with JLL to get their global lease administration system in top shape. This collaboration resulted in game-changing achievements: a 72% reduction in unconfirmed lease options, 100% consistency in retail-specific data across 1,500+ leases and a robust foundation for strategic portfolio management.

Managing an expansive global portfolio, this major sports retail company faced significant challenges due to decentralized management. Inconsistent data across regions hindered strategic decision-making, with key issues including:

• 14% of lease records past expiry date
• 29% of lease options with unconfirmed status
• Incomplete retail-specific clause data
• Risk of involuntary lease extensions and terminations
• Potential overpayments due to imperfect turnover rent monitoring
   

These issues exposed the company to financial risks, potential overpayments and missed cost-saving opportunities.

JLL stepped in with a comprehensive lease administration overhaul, focusing on creating a single source of truth for the client's global real estate data. The team implemented a four-pronged approach:
 

• Global data standardization: Collaborating with the client to revise and unify data management manuals, creating globally consistent guidelines supported by targeted training sessions

• Data completeness initiative: Establishing clear KPIs for data completeness and implementing regular, globally visible status reporting to drive accountability and progress

• Retail-specific data enhancement: Prioritizing the population of critical retail-specific data points to ensure comprehensive visibility into key provisions

• Continuous monitoring process: Implementing an ongoing monitoring system for all new and existing leases to maintain long-term data integrity and prevent future discrepancies

The partnership yielded impressive results:

• 72% reduction in unconfirmed lease extensions or options 
• 100% of retail-specific data populated consistently across the global portfolio
• Enhanced strategic decision-making capabilities through improved data visibility
• Reduced risk of involuntary lease extensions and terminations
• Improved cost control, particularly for turnover rent in key markets 
• Foundation laid for data-driven portfolio optimization and negotiation strategies
   

Kinga Piotrowicz, Head of Lease Administration EMEA, commented “This project exemplifies how precise, consistent lease data can drive significant value in large-scale retail operations. By leveraging our global expertise and innovative tools, we've helped our client achieve a new level of portfolio management efficiency.”

The regimen for maintaining data-driven optimization and negotiation strategies has catapulted the sports retailer to the top of their game in managing their global real estate portfolio. With JLL as their MVP, they've scored a major victory against inconsistent data and financial risks.

Is your global retail portfolio fumbling with inconsistent lease data? Don't let your business get sidelined! Team up with JLL's lease administration services to create a single source of truth for your portfolio data. We'll help you develop a championship strategy, driving efficiency, reducing risk and sharing strategic insights that will keep your business in the lead.