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Real Estate Technology, Capital Planning

Building Investor Confidence Using Technology

This article is number two in our series of targeted insight for investment managers seeking to leverage technology to provide better data-informed decisions to their investment partners. Capital planning and project management technology built for their unique needs sets them up to deliver better outcomes. 

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As investment managers, the goal is to deliver predictably successful outcomes for your investment partners. While there are no guarantees, it is possible to engender investor confidence through regular communication of budgets, plans, and potential liabilities, the progress of capital projects and reporting of actual performance compared to plan.  What does that entail? Leveraging purpose-built technology to transform data into actionable intelligence.

Communicate. Regularly.

Providing timely and relevant information to investors, despite impediments, builds trust. As competition increases, credibility differentiates those best positioned to succeed. 

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Capital deployment technology, designed for investment managers on behalf of investment partners, has clear benefits. Creating asset or portfolio-wide asset insights is time-consuming and rife with human error.  By comparison, investment managers assisted by technology can rely upon integrated systems as much as they rely upon the capital plans they manage. 

  • Centrally stored information, available to all stakeholders, is available to be aggregated from within an integrated ecosystem, providing greater transparency and clarity.
  • No matter how disconnected stakeholders and third-parties may be from one another (geographically or otherwise), data is input into the system once, eliminating issues related to static spreadsheets. As a result, information is neither diluted, delayed, or subject to data entry errors, making it far simpler to compare asset performance to plan.

Identifying Outliers, and Highlighting the Unexpected. 

Reliable data generates credible insights. For investment managers that means fewer surprises. Because data is not delivered according to individual schedules or subject to manual processes, differences between the plans and actual outcomes are identified sooner, and adjustments can be made.  

With standardized processes, the numerous painful steps in previously manual processes are eliminated. Real-time updates to the capital plan and performance provide a single source of truth end-to-end. Valuable insights can be applied to the capital planning process reliably, for portfolios large or small. 

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Reforecast Regularly to Improve NOI

In manual environments, the time it takes to aggregate information diminishes the accuracy of the information. In the absence of purpose-built technology, regular reporting is time-consuming.  These transmission delays adversely impact the reliability of mid-cycle reporting, increase the administrative burden, and make data snapshots undependable. 

When accurate data gathering can be easily accomplished, quarterly, and even monthly reforecasting becomes routine. Project budgets can be measured against actual costs, making irregularities more easily identifiable, and manageable. Asset managers can reallocate cash sooner and with greater insight, thereby enhancing NOI.

Better Resources Build Investor Confidence

Better insights delivered efficiently and more often minimizes investment partner risk, building confidence. Reliable data-derived insights enhance reforecasting, improve planning, building credibility. 

More robust data insights may drive greater consistency, driving project costs down and thereby creating greater opportunities to grow value, by project, by asset, across the portfolio. 

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Rochelle A. Carter-Wilson

Written by Rochelle A. Carter-Wilson

Rochelle is the Content Marketing Manager for Honest Buildings. She creates stories and other on-brand content to inform and engage owners and other members of the Commercial Real Estate industry.

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