What metrics should you track to manage your real estate portfolio?
Managing a commercial real estate portfolio can be challenging, especially in uncertain times. You need to monitor the performance, value, and risk of your properties and make informed decisions to optimize your returns. But how do you know what metrics to track and how to use them? In this article, we will discuss some of the key metrics that can help you manage your real estate portfolio effectively and efficiently.
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Benchmark against indexes:Compare your portfolio's performance with relevant indexes to gauge market positioning. It can illuminate whether you're outperforming or underperforming, guiding strategic adjustments for improved results.
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Maximize asset value:Regularly review each property's yield on cost to identify value creation opportunities. Upgrading common areas or adding amenities can enhance property appeal and increase returns, keeping your investments competitive.