About
Sodexo is a French food services and facilities management company headquartered in Paris and a world leader of over 100 services. Sodexo serves many sectors, including private corporations, government agencies, schools, hospitals, and many more.
Challenge
Sodexo managed their lease administration process using a mix of disparate technology solutions, fragmented manual processes and custom spreadsheets. This process made it increasingly difficult to efficiently adhere to and comply with new financial reporting and regulatory requirements.
Real Estate Portfolio
Mohr Partners contracted with Sodexo in 2011, and as of July 2021, manages the real estate portfolio of over 80 locations in the United States. The portfolio consists of about 82 expense leases and 5 income leases.
Results
Process
Mohr Partners implemented SOP's for Sodexo's lease abstraction, financial and desktop audit services.
Furthermore, Mohr assisted Sodexo in a creating a monthly process timeline. On the 5th month Mohr provided Sodexo with reports such as lease expiration, ongoing options, critical date and a customized tracking report. On quarterly basis Mohr provided Sodexo with an allocation report, rent obligations report and a profit center report.
On the 10th of the month Mohr sent Sodexo a rent variance report. On the 20th of the month the final rent roll was submitted to accounting for rent payment.
Mohr Partners provided Sodexo with a Lease Administration system (Harbor Flex), which offers the ability to manage leases and deliver thorough reports for lease data and management.
Mohr Partners eliminated issues that arose due to manual intervention and developed excel macros to automate monthly rent rolls and reports.
Timely reporting and accurate data has assisted Sodexo in making timely business decisions and presenting the most accurate data to their board. In addition, Mohr's CAM reconciliation process and estoppel review process has saved Sodexo's staff time and dollars.
By outsourcing lease admin services Sodexo saves approximately $70,000 in overhead costs.