With the ever-changing state of the commercial real estate industry (especially the past two years), forecasting is more difficult than ever for CRE professionals. But if you ask the right questions before you start, you can plan more accurately and efficiently.
Let’s take a look at a few valuable questions to ask yourself before forecasting.
1. ‘What will my work situation look like?’
How employers view employees working from home is changing, but most have a general plan for the next 6-12 months. Take a look at your individual situation and determine whether you’ll primarily be working remotely, in a hybrid format or back in the office. This can vary depending on the region where you live/work, of course, but knowing what to expect with your work situation will help you decide on the best long-term software options, prospecting techniques and physical ability to view or show a property. If your employer dictates your work situation and you’re unsure of future plans, don’t be afraid to ask!
2. ‘Which property types provide the biggest opportunity?’
The sub-sector of commercial real estate that you focus on is another big factor with forecasting. Is it time to expand your portfolio to other property types, regions or industries? Which provides the biggest opportunity? For example, travel and lodging properties, like hotels, have struggled with valuations the past two years as fewer people travel and spend money on accommodations. This can present a big opportunity if you include it in your forecasting scenar
3. ‘Are my processes as efficient as possible?’
Take a step back and look at how you spend your time. Manual data entry and keeping track of multiple spreadsheets doesn’t just require a lot of organizational skills; it also creates inefficiencies and forces you to spend time on time-consuming tasks. You might not even be able to dedicate enough time to proper forecasting, but using the right CRE tools can help. With Quarem, for example, you can automate the tasks that take up the most time (or provide the least value), such as data processing, market analysis and property management.
4. ‘Do I have access to accurate, updated market data?
Forecasting isn’t very helpful when the data you’re using for it is unreliable. This ties in to the other questions on this list, as the types of properties you target and daily processes depend on clean, updated data. CRE software again helps in this area, providing real-time market data that can be customized to help with reporting, forecasting and general decision-making. When you trust your data, it allows you to better focus on the bigger picture of your portfolio.
To see how CRE software like Quarem can help you with forecasting, request a demo today!