Will you be attending Realcomm in June? We look forward to seeing you there!
RAAMP is honored to be among the many CRE innovators who will present in Nashville at Realcomm 2019 in consideration of a “Digie” Award!
Realcomm has been presenting the Commercial Real Estate Digital Innovation “Digie” Awards since 1999. These awards recognize those who are improving the commercial, corporate, government and institutional real estate industries, which must manage an inordinate amount of information, systems and business processes to operate. This data-intensive, manual, mostly disconnected environment provides the perfect opportunity for innovation that can radically transform how we do business.
Realcomm is the leading conference focused on the topic of technology, innovation and automation for the Commercial and Corporate Real Estate and Facilities industries. This annual event brings together thousands of creative, forward-thinking, and insightful commercial and corporate real estate professionals from around the world who gather to discuss and debate how technology, automation and innovation continues to impact how we use, transact and operate real estate.
Dynamic Education Programs, Solution Provider Expo, LIVE Interviews, Tech Briefings and Tours, Networking – these are just a few of the many things that keep Commercial Real Estate, Corporate Real Estate, Institutional and Government IT, Facilities, Energy, Sustainability and HR Professionals coming back to Realcomm year after year!!
We look forward to seeing you there!
In the 2019 Deloitte Commercial Real Estate Outlook, the report had five key takeaways, one of which explored how the rapid evolution of technology and consumer preferences is redesigning commercial real estate (CRE) business models and bringing rapid change to the industry. Concurrently, the Altus CRE Innovation report of January 2019 collected similar findings.
As detailed on the Deloitte blog, there were five key takeaways:
Proptechs are increasingly popular with investors and are expanding their coverage across the real estate value chain. The Deloitte report found there is merit in CRE companies becoming knowledgeable about proptechs, since these firms are using technology to nurture new, innovative ideas that enhance operational efficiency, tenant experience, and information flow.
While commercial real estate has a reputation for being slow to adapt to changing technology, 2019 is seeing strong gains in the adaptation of technologies to recover missed revenues, gain broad efficiencies, and create seamless integrations between properties and teams. However, while many CRE firms have now invested in integrated CRE software solutions, many are still using spreadsheets for critical CRE functions which is creating more data silos.
According to Forbes and Altus group data, total investment in real estate technology was roughly $33 million in 2010. A total of $9.6 billion was invested into real estate companies in 2018. The 2018 figure was slightly less than in 2017 ($12.6 billion), with a variety of factors cited for the decrease, including a more sophisticated investor community, and the focus of $2 billion alone on WeWork.
In its broadest sense, proptech in commercial real estate is used to reduce or eliminate many of the routine CRE tasks in transactions, valuation, property management and leasing. Investor confidence is bolstered when Commercial Real Estate Property Management firms invest in technologies due to the resulting efficiencies and overall transparency achieved.
Common types of proptech include:
Adoption of proptech can be seen as challenging for some firms however: some organizations may have concerns that migration away from spreadsheets and legacy accounting programs will create disruptions in day-to-day operations.
This is a dangerously false position, and in reality, the opposite is true: inability to adopt new technologies will jeopardize the continuity of firms and companies that do not adapt. This is a business continuity matter. The key is in choosing the right platform: one that is not over-engineered and difficult to implement. We designed RAAMP specifically for these transitioning communities.
The Altus study further cites the distinct advantages operators can expect in both top-line and bottom-line gains by implementing proptech: the use of property technology removes existing information silos and takes the guesswork out of commercial real estate investing and property management.
The Time to Change is Now
A key finding of the Altus report indicated that a large majority of firms have already invested in integrated software solutions for critical CRE functions. However, 60% of executives said their firms are still utilizing spreadsheets as their primary tool for reporting, 51% for valuation and cash flow analysis and 45% for budgeting and forecasting, indicating that despite significant innovation, the industry continues to lag in certain areas.
By improving the experience of users of commercial space and accelerating the use of shared, innovative property technologies, commercial real estate firms and investors will become more profitable and provide a competitive edge against those that refuse to adapt to the changing marketplace.
Please contact us to learn more about how RAAMP’s proptech approach can seamlessly become a part of your firm’s accelerated growth.
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Common Area Maintenance (CAM) fees recovery as a result of negotiated or inherited leases can create accounting challenges that cause many commercial property managers significant lost time and resources for annual reconciliation.
The basis of an accurate CAM cost calculation is the collection of all relevant invoices and charges that fall under the umbrella of common area maintenance. It is important that property managers keep track of all relevant maintenance costs that need to be added to CAM calculations.
Many managers still use only Excel to track and calculate CAM recoveries manually, with all of the associated labor requirements and human error risk. Every year, millions of dollars are left on the table as property managers accidentally overlook items or fail to recognize existing errors in their manual calculations or spreadsheets.
Using disparate, non-integrated tools such as Excel in combination with dated accounting software multiplies the risk. Compiling CAM budgets and related expenses becomes a time-consuming, tedious, and error-inherent exercise.
After year-end costs have been received and calculated, property managers then work to reconcile CAM costs using these outdated and manual approaches. As a result, many commercial property managers spend a good part – if not all – of January completing reconciliations with little time for other, more profitable work.
Many software tools available are simply too cumbersome to fit the need; on-boarding can take weeks if not months, and the transfer of data alone can be a daunting task.
Using the CAM Checklist above with power of the RAAMP – Real Estate Accounting and Asset Management Platform — cuts the time to abstract and reconcile by an average of fifty percent for initial migration. This then supports instantaneous, real-time reconciliation throughout the year.
RAAMP’s software solution increases productivity between management teams, reduces the risk of missed revenue, and eliminates the need for multiple software and file management systems within a company.
To learn more about best practices in CAM reconciliation, contact us for a no-fee demonstration of the power of RAAMP.