It's not a good idea to keep all your eggs in one basket, or so the saying goes. But what if you need to count, compare or analyze those eggs? We won't run too far with this analogy, but think about it for a minute: imagine that each important data point, document and conversation impacting your portfolio is an egg and those eggs are scattered across different nests, coops, frying pans and supermarket shelves.* How can you possibly make sense of them? How can you harness your data to drive down costs and drive up Net Operating Income?
How decentralized data limits your ability to grow revenue
Even if your property and project management teams are decentralized, your data cannot be. When your data is sequestered by region, divided among third-party managers or siloed into spreadsheets, your ability to make informed, proactive decisions is hampered.
As an example, to accurately forecast future performance you need to thoroughly analyze historical performance. That requires assembling a complete picture of historical costs, including bid proposals, change orders and actual cost.
Let's take a closer look at how what happens when project data across your portfolio is not centralized:
Unlocking asset value by unifying data
Centralizing information, documents and communications for all projects across your portfolio is the key to maximizing the power of that data, and mitigating a slew of risks.
In the centralization scenario, data from projects across your portfolio lives in an integrated platform. Anyone involved in the operations of your portfolio—whether in-house managers, third-party service firms or consultants—can access the data they need in real time, without having to assemble pieces of information from different, and often incomplete, sources.
Here is a closer look:
The limits of centralization
So how can you push every data point, document, message and report into one platform for your entire company? Well, you can't and you probably shouldn't, even if you could. Anything that tries to do everything rarely does it well.
The answer is to look at technology platforms that drive value for your company's critical activities—like Hightower and VTS for leasing, Honest Buildings for portfolio project management, Rentlytics for multifamily property insights—and thoughtfully assemble a real estate technology stack that works together to create value. Modern platforms can integrate via an API so you have the benefit of accessing aggregated data without weakening the functionality your specialized teams need.
* But isn't putting all your eggs in one basket a bad idea because you could lose everything if that bucket gets lost? Any technology provider worth their salt has a comprehensive security plan that backs up data across the cloud. Here are the seven security points you should ask your technology vendor to be sure.