The CEO of Thirty Capital Financial (one of Lobby CRE’s sister brands), Kevin Swill, had the opportunity to lead a panel at the IMN Real Estate CFO & COO Forum conference in New York. The conversation focused around how commercial real estate (CRE) is evolving and becoming more reliant on data analytics. During the session, Kevin posed several thought-provoking questions to the panelists to find out how different CRE tech companies use data analytics to help their clients increase deal flow.
Read ahead for a recap of the insights and experiences shared during the session.
Question 1: What data analytics do you use in your company? Do you feel that the analytics help your clients increase deal flow?
The panel agreed that data enables borrowers to get a complete view not only of the asset itself but also the submarket, the market in general, and the asset class. In summary, the key financial statements, rent rolls, and environmental reports are all relevant in commercial real estate. The data will either solidify your understanding of the potential acquisition or will prove that the asset in question is not a proper fit for your portfolio.
Question 2: Do you think that having data analytics will cause appraisals to become extinct?
The overwhelming response from the panelists was no. However, they agreed that data analytics will confirm a 3rd-party appraiser’s valuation of the asset. An appraisal provides an income approach, a cost approach, and a replacement or value approach. The appraiser uses these three approaches to assign the true value of the property. Kevin strongly believes that having the right data can supplement or challenge the appraiser’s opinion.
Question 3: Is there any commercial real estate (CRE) technology that you don’t have that you wished you had?
One panelist shared that he wanted a single engine with functionality to support many different business units. In response, Kevin mentioned that, in the Thirty Capital portfolio of companies, Lobby CRE is the engine fueling all of our affiliated companies (EntityKeeper and Thirty Capital Financial). However, they all work together to support a different need/function of the business. For example, EntityKeeper helps with legal entity management. On the other hand, Thirty Capital Financial provides debt management services.
Collectively, the panelists advised CFOs and COOs to upgrade from their traditional data and reporting systems to technology, like Lobby CRE, for better analytical data. With this analytical data, you can more quickly understand the asset and assess the marketplace to determine whether it fits your acquisition plan (aka the deal flow).
Bonus Question: How Can Lobby CRE Help You Increase Deal Flow?
Lobby CRE automates time-consuming manual tasks, like data collection, analysis, and reporting. With automation, you can scale your firm’s processes and get time back to focus on deals. More time to focus on deals means more opportunities to manage and optimize cashflow.