In order to grow their portfolios and deliver on investor promises, institutional commercial real estate investment management firms generally start by scaling deal flow, allowing them to zero in on more opportunities aligned with their investment strategies. With an influx of new deals to review, firms rely on data when determining whether to rule out a deal, or closely vet it. Commercial real estate investment analysis software, like a deal management platform, empowers firms to arrive at the right investment answers faster. Read on to learn about the five most important features you should look for in real estate investment analysis software, and the role of each when it comes to making efficient, data-driven and systematic investment decisions.
5 Features Essential to Real Estate Investment Analysis Software
1. Standardize Incoming Data
Commercial real estate reports can open your firm’s eyes to game-changing insights, but standardized data opens new possibilities when it comes to analyzing deals, market trends and investment strategies. With data sourced in a standardized format, you can run deeper, more complex analyses, saving the time your team might otherwise spend reformatting that data. For example, standardizing the manner in which the walk score on a retail property is stored creates the possibility to pull a report including that score later on. Standardizing data also helps to unify terminology across the team, establishing consistency.
2. Preserve Historical Data for Future Real Estate Deal Analysis
Even deals that your firm rejects can prove valuable when it comes to future investment decisions. When choosing a real estate investment analysis tool like a deal management platform, pay careful attention to how the software preserves historical deal data. Unlike traditional methods of data preservation, such as storing data in spreadsheets, real estate investment analysis software ensures that this data can be easily utilized. As you review new deals, you can compare them against old deal data to see how they stack up against particular benchmarks. By creating one source of truth, your firm ensures that data will power investment decisions for years to come.
3. Generate Pipeline & Market Trend Reports Directly via Real Estate Investment Analysis Software
Beyond analyzing individual deals, preserving standardized data in real estate investment analysis software also presents powerful capabilities when it comes to analyzing market trends and pipeline deals. Specifically, deal management software enables firms to add filters, sorting deals by property type, location, deal type, and much more. This allows firms to look at specific segments of their deal pipelines, like Southeast retail deals and Chicago office deals, to gain a more specific understanding of where deals stand. By looking at similar reports that include historical deals, investors can analyze how certain markets are performing, and see how trends have unfolded over time.
With the ability to generate any type of report, your firm can look at data through unlimited lenses to keep a close eye on markets and make your data your competitive advantage.
4. Real-Time Deal Data & Pipeline Visibility
One of the most common bottlenecks that firms face when storing data in spreadsheets is the inability to view that data in real time. The real estate market moves quickly, and to keep a pulse on projected returns, while remaining in alignment with teams, real-time data helps stakeholders maintain clear visibility into all deals. Cloud-based real estate investment analysis software empowers teams to view up-to-the-minute changes, with confidence that recent updates won’t slip under the radar.
5. Industry-Standard Integrations & Open APIs
The goal of real estate investment analysis software is to empower your firm to make informed decisions with minimal steps. When that process requires excessive manual data inputs, it can bog down team members and create room for error. Instead, look for real estate investment analysis software like a deal management platform that offers industry-standard integrations and open APIs.
For example, firms using Dealpath can take advantage of integrated Esri data sets, which provide demographic data. The option to source deals by uploading carefully mapped Excel files ensures firms can get to work on the right deals in record time. Additionally, open bi-directional APIs allow changes to deal data on owned assets to be reflected in real time as that data is updated in related software.
Solving Process Inefficiencies With Real Estate Investment Analysis Software
Before scaling deal flow to deliver on investor returns, it’s crucial to re-evaluate how your firm analyzes deals. Are the same challenges, like difficulty recording data, tracking tasks and communications, and inconclusive analyses preventing your team from working efficiently?
Download our white paper, 5 Operational Inefficiencies That Slow Deal Flow (And How to Solve Them), to learn how you can streamline your firm’s investment processes to overcome these common challenges.