I have written an article in this month's RealcommEDGE Magazine that provides an overview of the "reason for being" for Real Estate Business Intelligence. It includes: A) Use case examples of how such systems can be utilized; B) Best practices learned in deploying these systems; and the C) Data challenges that must be navigated to achieve success. It also includes a client profile of a shopping center developer & asset manager who has embraced this approach to great success.
Excerpt: There is an axiom that you “Manage What You Measure.” For example, if you are a Shopping Center portfolio owner, you want to ensure that you have the right mix of tenants to support the rent levels that you are expecting. To do that, you need to track, measure and benchmark your merchants across multiple key performance indicators (KPIs), including Retail Sales and Target Occupancy Costs by category and subcategory.
Let me give you an example of how tracking Occupancy Costs can give you an information advantage. Occupancy Costs are a measure of rent plus the tenant’s share of property expenses, expressed as a percentage of the retailer’s sales. Say you have a dozen Subway operators dotted across your portfolio. If you know the range of Occupancy Costs that your Subway franchise’s support, you can quickly surmise who is paying too little rent, and who is at risk of defaulting.
Read the full article HERE.
If you are attending Realcomm Silicon Valley on June 21-24, and would like to connect, contact me via the contact form at my company, Datex Property Solutions, and we'll get something set up.
