Real estate rationalization 

Real estate rationalization: Accounting insights for the consumer industry

How are consumer companies adjusting their real estate strategies to prepare for the future of work? And what are the associated accounting implications? Sam Loughry, Consumer Speaks host and Deloitte & Touche LLP Audit & Assurance Consumer industry leader, is joined by Tim Kolber, Audit & Assurance managing director with Deloitte & Touche LLP’s Accounting & Reporting Advisory practice, and Matt Hurley, senior manager in Risk & Financial Advisory at Deloitte & Touche LLP. Together, they share insights on lease rationalization, current market trends, and the potential implications from a lessee’s perspective.

You want experience both from a legal perspective, but also an accounting perspective as this is an area ripe with pitfalls.

Lease Accounting — Real Estate Rationalization 101: Current Market Trends and the Potential Accounting Implications From a Lessee’s Perspective

It has been more than a year since the onset of the coronavirus disease 2019 (COVID-19) pandemic, which has had a pervasive impact on the global economy and has significantly changed how entities in almost every industry sector are doing business. As a result, many entities are evaluating their current business structures and related models to adapt to the current environment. Two of the more significant areas that many entities are reevaluating include where their employees will conduct their required business activities and to what extent they will rely on the use of brick-and-mortar real estate assets on a go-forward basis

Rightsizing your real estate footprint

Rethinking your real estate strategy? Many businesses are. But coming up with the right approach requires an understanding of the associated lease modification, impairment, and abandonment accounting implications. Our accounting resources can guide you through these complexities as you look to improve cost benefits and meet business objectives.

About consumer speaks

On the Consumer Speaks accounting and reporting podcast series, you’ll hear from our Deloitte leaders and professionals as they share their experiences and insights on timely topics across the automotive, consumer products, retail, wholesale and distribution, transportation, hospitality, and services industries. Stay informed on the hottest topics facing these industries and how they can affect your business.

Subscribe today and visit the Consumer Speaks library for the full collection of episodes.