Visual Lease Data Institute Predicts Lease Portfolios Will Drive Business Strategy Amidst Market Shifts, Regulatory Changes, and AI Advancements

National survey reveals 100% of Finance Executives are concerned with maintaining control over their lease portfolios

Woodbridge, NJ – Oct. 22, 2024 — Visual Lease (VL) the premier platform for integrated lease management, accounting, and reporting, today released a new report from The Visual Lease Data Institute (VLDI), “2025 Outlook: Lease Portfolio Management Trends, Risks & Opportunities.” In this annual survey, senior Finance and Real Estate leaders shared how enterprises can better navigate economic pressures, market shifts, and changing business needs by gaining a holistic view of their lease portfolio.

“As leases are often a business’s second-largest expense, there is much to be gained from managing these assets appropriately,” said Robert Michlewicz, CEO of Visual Lease. “Key benefits include the ability to react to unforeseen circumstances, identify cost savings opportunities, and easily sustain accurate financial reporting and compliance. The latest VLDI report highlights the main components of a successful lease portfolio management strategy: utilizing a centralized system of record for related data sets and facilitating cross-departmental collaboration amongst critical stakeholders, including Finance, Real Estate, IT, Legal, Operations, and Sustainability.”

VL reports that 100% of Finance Executives have concerns with maintaining control over their organization’s lease portfolio, including the ability to maintain compliance with ESG reporting requirements (52%, compared to 44% in 2023), maintaining data accuracy and completeness (49%, compared to 48% in 2023) and reacting to unforeseen circumstances (49%, compared to 46% in 2023). These concerns stem from real consequences, with 99% of Real Estate Executives reporting negative outcomes from inadequate lease controls, including overpaying rent or expenses (36%), the inability to respond to changing circumstances (36%), or missing an opportunity to update unfavorable or unwanted terms (31%).

“Given the significant opportunities and risks associated with leases, we anticipate that optimizing lease-related financial and operational strategies will solidify its place as a top business priority in 2025,” added Michlewicz. “Organizations that embrace this shift will sustain their competitive advantage and resilience in a continuously evolving business landscape.”

Additional key findings from the report include:

• There is significant progress to be made around ESG reporting readiness.
  The majority (55%) of Finance Executives reported that the pause on the SEC climate disclosure rule has impacted their organization’s climate-related reporting efforts, and only 43% say their companies have established related benchmarks (just a 4% increase from 2023).
• The Office of Finance is both interested in and concerned about implementing AI.
  While 100% of Finance Executives agree that AI will benefit the Office of Finance, 48% believe that a lack of strategy around how to use AI to improve efficiency is one of the top concerns facing their industry today.
• Many organizations have a critical collaboration gap that needs to be addressed.
  Ninety percent of Finance Executives believe they are mostly or completely collaborative with the team that manages their company’s commercial real estate leases. Conversely, only 50% of Real Estate Executives believe they are mostly or completely collaborative with their company’s finance team, highlighting a substantial collaboration gap between the many teams who interact with a lease portfolio, including Finance, Real Estate, Sustainability, Operations, Legal, and IT.

To register for VL’s upcoming webinar to review the key report findings, click here. To download the report and view the full data findings, click here.

Visual Lease conducted national surveys of 200 U.S. senior Finance and Accounting Executives and 200 U.S. senior Real Estate Executives at private, public and government organizations with more than 1,000 employees.

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About Visual Lease (VL)

Visual Lease (VL) is the premier platform for integrated lease management and lease accounting, trusted by enterprises worldwide to navigate complex portfolios with precision and ease. As the centralized system of record for all lease-related financial, operational, and legal data, VL is purpose-built to support every team involved in managing a company’s leased and owned assets. Informed by nearly three decades of experience, our platform integrates lease management, lease accounting, and sustainability reporting, enabling organizations to save time, mitigate risks, reduce costs, and support sustainability initiatives. Our award-winning software is used by 1,500+ organizations to manage more than 1 million real estate, equipment, and other leased asset records globally. For more information, visit visuallease.com.

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Erica Bonavitacola
Visual Lease
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