Lease Accounting and Management Software Market
Lease Accounting and Management Software Market (Component: Software and Services; Deployment: On Premise and Cloud; and Application: Residential & Commercial Real Estate Leases, Equipment Leases, Employment & Services Contracts, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
Press Release :
Complex Lease Modifications Due to COVID-19 Outbreak Fuel Demand for Software
The COVID-19 crisis has deeply affected all businesses in one way or another. This has enormously stressed the leasing industry. Social distancing and work from home measures have forced non-essential businesses, physical stores, and offices to close. Since lease accounting and management related to offices, retail stores, and warehouses has become complex due to the ongoing pandemic, companies in the lease accounting and management software market are creating awareness about their platforms.
Yardi Corom - a provider of lease management and accounting software, is increasing its marketing efforts to publicize its software that helps users to deal with financial components such as lease modifications, concessions, and changes to payments. Thus, to achieve this, companies in the lease accounting and management software market are helping users to comply with the FASB (Financial Accounting Standards Board) guidelines.
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New Accounting Standards Pose Challenges for Software Providers
The constantly evolving lease accounting standards are affecting the growth of the lease accounting and management software market. Hence, Aptitude Software - a provider of financial management software & regulatory compliance solutions, is finding opportunity in this challenge to help ease finance operations. Software providers are increasing the availability of platforms that deliver judgment consistency that simplify calculation complexity and that align with multi-GAAP requirements. Since there is a lack of co-ordination between the International Financial Reporting Standards (IFRS) and the US GAAPs, software providers need to ensure multi-GAAP accounting capabilities to facilitate audits and financial transactions.
Though new standards pose hurdles for accountants, it also presents an opportunity for organizations to centralize their lease portfolio and obtain a better understanding of the company’s lease positions.
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Online, Cloud-based Software Recognized by International Audit Firms
The lease accounting and management software market is anticipated to clock a robust CAGR of ~10% during the forecast perido. Online reviews on the best lease management software are helping users make an informed decision before investing in any software. The ZenTreasury lease accounting software is being publicized for automating and simplifying lease operations. Software providers are increasing the availability of all-in-one accounting software solutions that help to achieve IFRS 16 compliance. Validations from the international audit firm are bolstering credibility credentials of software providers.
The lease accounting and management software market is undergoing a significant change with the emergence of cloud, SaaS (Software as a Service), and web-based platforms. Companies are innovating in online lease management and accounting software meant for professional residential and mixed-use property managers. Innovative platforms are being designed to seamlessly manage multi-family units and offer free live chat support.
Software Providers Developing Platforms Mission-critical in Lease Administration
There is a growing need to ensure compliance and make informed decision about leases. Accruent's intelligent lease administration software solution helps organizations to manage complex real estate and equipment lease scenarios. Companies in the lease accounting and management software market are taking cues from such software providers to develop platforms that are mission-critical in lease administration that help to mitigate risk and provide transparency into the entire lease portfolio for better decision making.
The demand for FASB and IASB compliant software is high. Companies in the lease accounting and management software market are providing robust platforms that meet the needs of both real estate and equipment leases. Users are preferring flexible software platforms that scale in the sectors of healthcare, telecomm and retail, among others.
Robust Calculation Engine in Software Needed for Reducing Manual Errors
There is growing awareness about the facts that need to be taken into consideration before opting for a lease accounting and management software. Companies in the lease accounting and management software market are benefitting from the fact that such platforms help to minimize the number of manual tasks required to comply with the standard requirements. Such software technology is being leveraged to increase the accuracy of financial reporting by removing manual errors.
Lease accounting and management software help to enhance the visibility over critical data, including financial or portfolio characteristics. Companies in the lease accounting and management software market are engineering platforms that meet the lease accounting standard calculation requirements. Since listed multinational companies are subject to thousands of leases across multiple currencies, it becomes customary for the software to have a robust calculation engine.
Scalability, Flexibility in Software Reduce Complexity to Integrate in Existing Ecosystem
Commercial lease management software must integrate with the users’ accounting ecosystem. An inability to seamlessly integrate a new software platform with the existing database results in bottlenecks and human error. Hence, companies in the lease accounting and management software market should develop platforms that are flexible and scale as per the users’ requirements. The extended functionality in software is the key to reduce complexity and errors with a system that do not integrate fully.
Cloud-based platforms are storming the lease accounting and management software market. These systems allow teams to work in real-time with access to a centralized database from any location. Cloud-based software are facilitating flexibility and give users the ability to access important information pertaining to lease management.
Good Commercial Leasing Software Help Property Managers to Improve Lease Performance
Companies in the lease accounting and management software market are providing systems that enable custom reporting and automate the delivery of data to the right people. The dedicated lease management software help the user to obtain real-time updates on lease performance, and helps to tackle red flags as they arise. Accountants in retail stores, commercial offices, and multinational companies are looking for software that create custom reports required by respective stakeholders to improve lease performance.
Automated delivery of data on lease performance helps stakeholders and lessors in strategic decision-making. Comprehensive compliance management has become a recurring trend in order to avoid penalties and loss of license. The efficient commercial leasing software help property managers to stay sure about the most recent leasing guidelines. Such software help to maintain audit-friendly data and reports.
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During the ongoing COVID-19 pandemic, more focus is being paid to adhere with FASB guidelines for partial termination, rent abatement, and for reducing the scope of impairment. The lease accounting and management software market is expected to reach the valuation of US$ 3 Bn by 2031. Over-the-air software updates and changes in regulatory compliance hold promising potential to help property managers stay abreast with new software and guideline developments. However, the inability of commercial lease management software to seamlessly integrate with existing systems and database results in bottlenecks and human error. Thus, to overcome this, companies should develop software that scales as per specific requirements of users to reduce complexity and human error.
Lease Accounting and Management Software Market: Overview
- The latest research report published by Transparency Market Research pertains to the global lease accounting and management software market for the historical period of 2018–2019; 2020 is the actual year and the forecast period is 2021-2031. Increasing application in healthcare, media & entertainment, government, retail & eCommerce, and travel & hospitality segments to resolve various customer queries is expected to boost the lease accounting and management software market. The lease accounting and management software market is witnessing strong growth due to the growing adoption of these solutions among enterprises to provide customers with better experiences through many channels, such as video, voice, mobile, web, and social media.
- In terms of revenue, the global lease accounting and management software market is estimated to reach value of US$ 3 Bn by 2031, expanding at a CAGR of ~10% during the forecast period
Rise in Demand for Software-as-a-Service (SaaS) Model in Lease Management
- Adoption of cloud technology is one of the major inventions in the software industry. The focus toward cloud has enabled numerous software developers to emphasize more on technological upgrades in terms of lease accounting and management software solutions. Software-as-a-Service-based solutions empower end users to cancel services at any time and pay per use based on their requirement. The Software-as-a-Service model enables real estate enterprises to integrate various types of platforms or software across the leasing portfolio.
- The Software-as-a-Service model aids multi-vendor software compatibility together with legacy systems. The model helps real-estate managers to assimilate lease accounting and management software platforms with innovative payment solutions for smooth and easy transactions. Lease accounting and management software platforms allow regimented lease administration management, easy process integration, and energy utilization. Hence, enterprises are emphasizing on the deployment of cloud platforms for their operational needs. The utilization of SaaS software aids various enterprises to meet multifaceted lease accounting and management challenges.
- For instance, in July 2019, LeaseAccelerator, Inc., an IT company specialized in the field of lease accounting and management, and lease administration acquired Guardian Global Systems, a supplier of real estate administration SaaS, to extend its portfolio with new and advanced solutions to help real estate executives manage the complexities of lease property contracts, land, and buildings.
- Various policies and regulations are defined by governments across the world to protect the rights of tenants, residents, and property owners. Property managers have to manage the process for rent or lease as per these new regulations such as FASB Topic ASC 842, FASB Topic 840, IAS 17, and IFRS 16.
- According to the Equipment Leasing and Finance Association, around 80% of the U.S.-based companies lease all of their equipment. Hence, the new leasing standards would affect companies across industries.
- For instance, PowerPlan, Inc. launched lease accounting and management software that can help enterprises transition to the new standards via a centralized lease repository that manages the complete lease lifecycle and supports compliance with both new and existing FASB and IFRS regulations
Emergence of Technologies
- Currently, the market is witnessing significant adoption of advanced technologies such as advanced analytics, Internet of Things (IoT), cutting-edge sensors, SaaS, and mobility, which is driving the demand for enterprise integration than ever before. This, in turn, is positively impacting the development of lease accounting and management software across real estate organizations.
- Lease accounting and management software vendors offer assimilated solutions with the demand of users to connect over social media, impacting space utilization and project collaboration. The lease accounting and management software is able to support device data from meters, smartphones, and sensors, thus driving decisions, operations, and facilities automation. Unlike customary analytical tools, the lease accounting and management software is presently integrated with the REFM (Real Estate Financial Modeling) business process and is pre-configured for business use. This solution is able to offer predictive analytics, and emerging presence analytics and cognitive analytics.
- AI, mobility, IoT, and other emerging technologies are considered major opportunities, as they can be game-changers for real estate managers. The implementation of IoT would streamline operations, as lease data can be robotically collected by using sensors, which in future can be evaluated for maintenance operations at extreme efficiency. IoT is in the emerging stage but offers considerable potential in the upcoming years. Therefore, expansion of the IoT market is estimated to positively impact the lease accounting and management software market.
Lease Accounting and Management Software Market: Competition Landscape
- Detailed profiles of providers of lease accounting and management software have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies. Key players operating in the global lease accounting and management software market are
- Accruent LLC
- CoStar Realty Information, Inc.
- Deloitte Touche Tohmatsu Limited
- IBM Corporation
- KPMG International Limited
- LeaseAccelerator, Inc.
- LeaseQuery, LLC
- MRI Software LLC
- Nakisa Inc.
- Nomos Limited
- PowerPlan, Inc.
- RealPage, Inc.
- SMR Group (AMSI)
- SS&C Technologies, Inc. (Skyline)
- Visual Lease, LLC
- Tagetik Software S.r.l.
Lease Accounting and Management Software Market: Key Developments
- Key providers of lease accounting and management software, such as LeaseQuery, LLC, LeaseAccelerator, Inc., Nakisa Inc., and MRI Software LLC, are focusing on the development of cost-effective and compact lease accounting and management software to attract more customers. Additionally, players active in providing lease accounting and management software are focusing on inorganic growth strategies such as strategic collaborations and merger & acquisition activities with technology partners to improve their offerings and market reach.
- Some other key developments in the global lease accounting and management software market are highlighted below:
- In January 2021, LeaseQuery LLC, a provider of purpose-built lease accounting software, entered into a partnership with Microsoft Corporation to facilitate complex lease accounting compliance
- In January 2021, MRI Software LLC, a provider of real estate and investment management software, acquired AMT direct, a lease accounting and management software company, to manage its leases and to maintain compliance with new lease accounting standards
- In November 2020, Nakisa, Inc., a technology company that specializes in offering enterprise business solutions, acquired IMNAT Software, Inc., a cloud-based real estate management solutions company, to increase focus on centralizing and automating compliance and accounting operations
- In the global lease accounting and management software market report, we have discussed individual strategies, followed by company profiles of providers of lease accounting and management software. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global lease accounting and management software market.
Lease Accounting and Management Software Market – Scope of Report
A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global lease accounting and management software market to accurately gauge its potential future development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the lease accounting and management software market, to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the lease accounting and management software market is expected to progress during the forecast period of 2021-2031.
The report offers intricate dynamics about the different aspects of the lease accounting and management software market that aids companies operating in the market in making strategic development decisions. TMR’s study elaborates on the significant changes that are highly anticipated to configure the growth of the lease accounting and management software market during the forecast period. It also includes a key indicator assessment to highlight the growth prospects of the lease accounting and management software market, and estimates statistics related to the market progress in terms of value (US$ Mn).
The study covers a detailed segmentation of the lease accounting and management software market, along with country analysis, key information, and a competitive outlook. The report mentions the company profiles of key players that are currently dominating the lease accounting and management software market, wherein various development, expansion, and winning strategies practiced and executed by leading players have been presented in detail.
Key Questions Answered in TMR’s Report on Lease Accounting and Management Software Market
The report provides detailed information about the lease accounting and management software market on the basis of comprehensive research on various factors that play a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the lease accounting and management software market, so as to help them make successful strategies and take target-driven decisions.
- Which regions will continue to remain the most profitable regional markets for lease accounting and management software market players?
- Which factors will induce a change in demand for lease accounting and management software during the assessment period?
- How will changing trends impact the lease accounting and management software market?
- How will COVID-19 impact the lease accounting and management software market?
- How can market players capture low-hanging opportunities in the lease accounting and management software market in developed regions?
- Which companies are leading the lease accounting and management software market?
- What are the winning strategies of stakeholders in the lease accounting and management software market to upscale their position in this landscape?
- What will be the Y-o-Y growth of the lease accounting and management software market between 2021 and 2031?
- What are the winning imperatives of market frontrunners in the lease accounting and management software market?
Research Methodology – Lease Accounting and Management Software Market
The research methodology adopted by analysts to compile the lease accounting and management software market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the industry-affiliated information that is obtained and legitimated by market-admissible sources, analysts have offered riveting observations and authentic forecasts of the lease accounting and management software market.
During the primary research phase, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of data obtained through the interviews of genuine sources, analysts have emphasized the changing scenario of the lease accounting and management software market.
For secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the lease accounting and management software market.
Lease Accounting and Management Software Market – Segmentation
TMR’s research study assesses the lease accounting and management software market on the basis of component, deployment, application, and region. The report presents extensive market dynamics and progressive trends associated with different segments, and how they influence the growth prospects of the lease accounting and management software market.