BPM Real Estate Insights 11
Three Ways CRE-Tech Helps Real Estate Investors Meet Their KPIs
By Mark Leverette
This article was featured in the March 1, 2018 issue of the Silicon Valley Business Journal.
Getting the right deal at the right time is the essence of savvy investing. Attention to key performance indicators( KPIs) is an effective way to help you improve on speed, accuracy, and adaptability. Implementing the right technologies can advance these three metrics for success and help your organization make better investments, faster.
Speed: Communication and User Interface
To stay competitive, investors must operate with speed. Collaboration and communication need to be organized and fluid, both within the team and externally. Commercial real estate technology( CRE-Tech) can help you streamline these processes through automation and efficiencyoptimized workflows.
Deal management systems can provide your team with a centralized dashboard that in turn allows you to better create, manage and track every element of your projects. KPIs for speed include number of hours per initial pursuit decision, number of days per approval, and the number of days it takes to close a deal. Also, think about the time at each seniority level of the team, and who makes the decision to continue to invest resources in a deal or project.
Accuracy: Data Availability and Version Control
Accurate, credible data empowers good decision-making. The more accurate your financial insights are, the greater the value and savings tend to be. That’ s why it’ s so important that you monitor the accuracy of your data and adjust your timelines to match the caution required.
Thanks to discovery services, it’ s actually easier than ever to make better-informed decisions quickly. These tools provide real-time insight into millions of commercial properties, and the information you receive is crowd-sourced and verified by teams of industry experts. This helps you determine the actual cost that it takes to pursue a project and whether it’ s worth the risks involved.
Accuracy, as well as time, can be lost by“ migrating” data between systems, so using systems that are designed to work together will give your firm the competitive edge. Also, make sure to maintain good data hygiene, to ensure that your information is accurate, up-to-date, and secure, especially when you need to proceed with speed.
KPIs for a deal workflow include the number of versions of presentations, number of data errors, number of internal rejections, and the total value change from initial underwriting to final offer. Think of these metrics as a multiplier to the effects of your speed KPI’ s.
Adaptability: Cloud-Based Platforms and Connectivity( APIs)
The commercial real estate market is not immune to economic and political changes that could drastically affect financing rates, credit availability, lease rates, and overall access to capital. Leaders and investors must stay abreast of the latest trends and expert predictions to adapt and pivot their business strategies when necessary. Similarly, your systems need to quickly adapt to your firm’ s changing business model, new areas of focus, and new products.
Change management is healthier in small, incremental steps. Today’ s technologies are ever-more adaptive to small improvements, and allow for your current systems to be
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