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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