French philosopher Jacques Ellul once said, “Modern technology has become a total phenomenon for civilization, the defining force of a new social order in which efficiency is no longer an option but a necessity imposed on all human activity.” Indeed, just about every industry is going through some level of digital disruption. While transformation in commercial real estate (CRE) is still in its infancy, crossing the digital divide and embracing technology is increasingly becoming less of a luxury and more of a necessity in order for firms to operate the business effectively and remain competitive.
Defining Portfolio Management Software
“Portfolio management software” is technology that enables commercial real estate firms to effectively manage their properties and assets. The goal of portfolio management software is to streamline operations by collecting property and portfolio data and making it more accessible and actionable. This type of software solution is built specifically for CRE professionals and intended to address the unique needs, challenges, and pain points of this industry.
Benefits of Portfolio Management Software
Portfolio management software provides cost and time savings throughout your business operations while improving visibility into your properties’ performance. Below are just a few of the additional benefits a portfolio management solution can provide to CRE businesses.
Make more informed decisions. There are thousands of data points created for each property, not to mention all the third-party market information that is now available. With this volume of data, which is often scattered among dozens of platforms, it can be challenging to know how to leverage the information in your decision-making process. As a result, you may find yourself reactively (rather than proactively) managing your portfolio and even falling back on instinct-based decision-making practices. Portfolio management software collects data from internal and external sources, measures and tracks the metrics that matter most to you, and generates accessible and actionable insights. With a full 360-degree overview of your portfolio at your fingertips, you can make informed decisions in a timely manner.
Scale more effectively. As the business grows, it can become even more challenging and complex to monitor each of your properties. Further, the spreadsheets, reporting, and other financial information will increase exponentially, putting strain on your limited resources and exposing your organization to human error-based risk. Portfolio management software automates those manual and time-consuming processes such as data entry, collection, analysis, and reporting. It also reduces the risks associated with spreadsheets, streamlines operations, and ensures compliance with regulations. With automation in place, you can maximize the output of your human resources by enabling them to focus their time on more value-add tasks for the firm.
Proactively identify risks and opportunities in your portfolio. The world of commercial real estate is constantly evolving, impacting both your portfolio and business operations. To effectively navigate these shifts, minimize the threats, and maximize the opportunities, you need a way to monitor your portfolio, as well as assess potential impacts from market forces. Portfolio management software enables you to set thresholds for specified metrics and receive real-time alerts and recommendations for next steps. Intuitive, configurable dashboards offer a single location to manage both operations and portfolio insights and help you align with and execute on your growth strategy.
Improve team collaboration and productivity. Your CRE firm may have data silos, process silos, and even people silos. Working in a vacuum with this type of separation restricts the flow of information, slows down workflows, and can even facilitate miscommunication. Portfolio management software breaks down those silos by creating a single source of truth for information and providing tools such as internal chat, task management, and file sharing. With this type of functionality, you can manage your team and your employees from the same location, keep stakeholders informed, and get real-time feedback. Further, employees can work more efficiently and collaboratively.
How to Choose a Portfolio Management Platform
Not all software solutions are built equally. You want technology that will help take your firm to the next level, future-proof the business, and not hinder your performance. Look for the following types of features when evaluating portfolio management solutions:
- Cloud-based functionality, which provides anywhere, anytime access
- An intuitive, user-friendly interface
- Configurable metrics, dashboards, and reporting
- Integrations with other platforms in your technology stack
- Data security: data backup and encryption methods that meet compliance standards
- Ability to assign permissions and access based on your data governance policies
To learn more about how commercial real estate firms have used asset management software such as Lobby CRE to optimize decision-making, automate manual processes, and drive value, click here!