What are the best ways to benchmark your CRE portfolio performance?

Définissez des buts précis pour le benchmarking, comme repérer les biens qui performent moins bien, estimer les besoins en investissement et analyser les risques du portefeuille. Fixez des objectifs principaux comme augmenter le revenu net d'exploitation, diminuer le taux de vacance et booster la fidélisation des locataires.

Today, more than ever, employees and employers are questioning the role of physical space. What are offices for? What work is best done together? How can design enhance collective identity? This highlights that physical space is a valuable asset, not just a liability. High performing CRE portfolio goals, objectives, metrics and KPIs should enhance the value of physical space. These can complement more traditional space and cost efficiency or sustainability impact metrics, goals and objectives, which view real estate as a liability to be managed.

In my experience, the first step is to understand the organization's goals and annual report is a great source of information. Moreover, senior executives can provide the best view of the major initiatives to achieve these goals. This will allow RE manager to build a strategy aligned with goals, coherent with major projects and to define the key metrics to measure, benchmark and report.

First establish your criteria (cash-flow, capital gains, ESG, short-term or long-term investment, tax considerations, etc.) and hurdles (financial, tax, impact, etc.) so you can evaluate KPIs remembering that a poor KPI may be a step forward on a long-term plan or not even relevant to your plan.

Whenever we start engagement with any customer in CRE area providing the one BI dashboards at the end we start usually with... UI/UX designers. They sit down with customers and after couple of workshops and weeks of work they quickly set up mockup of the solution. Comparing to regular waterfall method where You prepare long Business Requirements Specification, our customers enjoy such style of work as relatively quickly they got visualized the things, which they want to achieve. We see this sparkle in their eyes and usually it gives us a nice vibe when starting the cooperation as they realize themselves what they want to achieve. Thank You again our UI/UX team ;)

External benchmarking – make sure that acquired benchmarks are have a sound method (sample size, time period, macro/micro location , industry, etc.) Internal benchmarking – similarly, there needs to be a sound method. Without sufficient sample size, benchmark interpretations could be made on 1 or a few specific situations, which might not be representative of the market, building or industry. With both, getting it wrong means you're comparing apples to oranges- it negates the whole point of benchmarking

The combination of benchmarking, and keeping an eye on the private side of trust banking. Complete view of direction, building stable, transparent, and fiscally beneficial associations.

CRE portfolio performance benchmarking analysis should be performed against 1.similar portfolio that are composed with similar properties in similar locations 2.portfolios that are composed of single asset type (e.g., class A multifamily) 3.portfolio that are composed of certain target markets 4.Not only the real estate portfolios but also public stock market, bond market, and private equity market to understand if you are losing any opportunity cost by investing in CRE.

Internal benchmarking is very useful when rolling out a strategy across a diverse portfolio (i.e. location) and KPI is tied to an internal objective such as people engagement or to measure progress towards a global target (% clean energy). External benchmarking is useful when KPI is tied to market data such as rent rate, vacancy rate etc

Debe realizarse una evaluación apropiada de lo que se pretendía y lo real, basado en indicadores de gestión y análisis del mercado actual

Some ways to get started: (1) Use industry sources that specialize in your sector/property type. Some of the top include: IFMA, BOMA, NAOIP, CoreNet and ASHE. (2) To further refine your insights, leverage your service provider partner(s) to glean direct industry competitor benchmark trends. (3) Last, focus on comparing specific geographies to benchmarks rather than at a portfolio-only level, since regional variances play a large role in cost structures. The distribution of your own portfolio in high, moderate or low cost geographies may make it higher than average, but it should be in-line within a geography.

There is lastly huge hype around AI, but the one will be only as accurate as datasets provide to the one. Usually a lot of time is spent to align definitions of specific even basic measures like: what "headcount" really is? Does it include subcontractors or not? How quickly and automatically can we update the value for each building across the whole globe? Very often ambitious goals hit quickly lack of such data causing that even basing answers can be collected after months of hard work, so... verify what data needs to be collected before You promise that in X months specific KPI like Headcount can be measured monthly.

My methods for defining the product I want to develop are based on exhaustive market research, comparing with the competition to check market trends, CRE sales prices and even comparisons with competing suppliers.

My experience has been that collecting data can be the greatest challenge, because RE manager will need to tap into datasets in multiple departments (HR, finance, sustainability). These datasets may have been designed with objectives that are different from your project's goal and departments may have different pov's on the same "data".

Many of our CRE BI projects are about constant data sets alignment, validation and collecting additional data for new needs. There is a crucial decision to make if the datasets should be updated in each 15 minutes, hourly, monthly, quarterly or yearly as it determines the pulse of the project. There is also a huge difference between the project which is based on one, even enriched datasource and the project collecting data from 10-20 datasources, where building canonical data model becomes a must as only then You can maintain definitions of key measures across specific domain.

Be sure to contextualize and to further analyze noteworthy results. Let us say your CRE portfolio is 5 suburban pizza shops in the same metro-area. You benchmark, at the portfolio-level, annual sales revenue. Two of the five shops have sales revenue below your portfolio YoY average. The data shows a reality but does not explain why. So, you need to put the data in context and ask more questions. What changed from the last sales year? Is the market area in these two locations changing resulting in lower pizza sales? Have the other three pizza shops done a better job at marketing compared to these two other shops? Benchmarking is a starting point to reveal patterns in the data. You need to critically think about the results in context.

Vieles wurde bereits durch Vorkommentatoren erg?nzt. Wir haben unglaublich gute Erfahrungen damit gemacht, die Perspektive zu wechseln. Betrachter man das Portfolio als Profit-Center und passt die Gesellschaft darauf hin an, optimiert sich das System selbst. Hier braucht man dan neben Immobilienwirtschaftlichen KPI auch klassische KPI der Betriebswirtschaft.

Relevance is more important than quantity. Focus on the data and results that are relevant to the strategy and to the business.

El análisis e interpretación debe hacerse desde el punto de vista cuantitativo y cualitativo. Y un análisis de tendencias y comportamientos a futuro

For some strategies it is possible to establish thresholds for KPIs and potential scenarios/actions that are triggered when a particular KPI reaches certain levels. For example when market rent reaches a certain level of discount to contracted rent, it may trigger rent negotiations of leases that have upcoming options to mark to market.

Most of the systems, which we provide are on-line accessible 24/7 but there is huge challenge in front of each organization how to marketing specific solution within organization and how to inform key stakeholders about major updates. It happens quite often that there are contrary or even competing systems in the same organization. Lack of proper enterprise system architecture and enterprise data architecture is a common situation, which we need to cope with working with various companies.

Communicate with investors and don't downplay bad news. Be informative as to what happened and how it will be addressed. Good news is best, bad news happens, no news is setting up for disaster.

Bei der Bewertung von CRE-Portfolios heute sind Standort, Nutzungstrends, Nachhaltigkeit, Mieterprofil, Finanzierungskonditionen, Regulierung, politische Faktoren und Marktentwicklung entscheidend. Mikro- und Makrostandortfaktoren, Technologieeinfluss, Mieterqualit?t und langfristige Vertr?ge sowie umweltfreundliche Bauweisen beeinflussen die Rentabilit?t und Stabilit?t.

Bei der Bewertung von CRE-Portfolios sind heute Standort, Nutzungstrends, Nachhaltigkeit, Mieterprofil, Finanzierungskonditionen, Regulierung, politische Faktoren und Marktentwicklung entscheidend. Mikro- und Makrostandortfaktoren, Technologieeinfluss, Mieterqualit?t und langfristige Vertr?ge sowie umweltfreundliche Bauweisen beeinflussen die Rentabilit?t und Stabilit?t.

In terms of the best ways to benchmark my CRE portfolio, it's crucial to have a relationship with market lenders, not just bank lenders, but also customers and suppliers, who will be crucial to the success of CRE, and above all to achieving a good level of ROE and ROI profitability.

Il faut garder a l'?il les risques associés à chaque propriété et au portefeuille dans son ensemble. En incluant l'analyse des risques du marché, les risques locatifs, les risques liés à l'emplacement des propriétés ainsi que les risques financiers.