Let’s face it. Getting into a rut is a fairly common occurrence in life. From the way you reach for the exact same brand of shampoo when shopping to the abandoned New Year’s work-out resolutions, people are creatures of habits that are hard to break. While this is an easy thing to fix when it comes to personal grooming or your waistline, changing long ingrained “this is how it’s always been done” mentality can be extremely difficult in your commercial real estate portfolio.
As a CRE professional you know firsthand that stagnation of ideas leads to lack of growth in your portfolio. If the concept of spinning your wheels hits a little too close to home, read on for the five most common reasons your CRE Portfolio may not be growing, and solutions for how to get back on track.
While no sane person loves minutia and details (we’re looking at you Don in accounting) when it comes to your CRE portfolio it’s often the small things that can end up costing you big in the long run. Not knowing critical data on items such as lease expiration dates or terms on modifications or property inclusions will often start off as small inconveniences. These “little things” though can and do add up over time. Given enough missed deadlines, overlooked appliance or furniture loss or other expenditures, you can be out serious revenue. These costs cut into your overall profits, reducing the funds available for reinvestment and causing big stall outs in the growth of your CRE empire.
Missing the Forest for the Trees
While the minutia can be important, CRE professionals also can’t afford to lose sight of the bird’s eye view of their overall portfolio. Big picture analytics allow CRE property managers to compare apples-to-apples, and sometimes oranges or even pears, in order to identify over and underperforming assets. This in turn allows CRE professionals to make smart decisions regarding purchases, sales and areas to invest in property improvements. Neglect the big picture and you run the risk of losing out on an important source of research needed for revenue enhancement.
Burning Time on Clerical Work
Need to find that important lease term or produce a form amendment document that you know you’ve seen a million times but can’t seem to find a copy of? Spending time on administrative and clerical tasks takes away from what you could be spending on growing your portfolio. Quality lease abstracting and project and team communication software, such as solutions provided by Quarem, can cut down on time spent on these monotonous time sinks. File, cross reference and analyze the documents most important to your business so you can get back to doing what you do best.
Cost and Time Overruns Galore
Speaking of wasted time, how many times have you gotten into the middle of a property improvement, upgrade or regular maintenance project only to discover you are over budget? Or perhaps you hired an independent painter only to discover that your general contractor already had one on the job site performing the needed tasks. In the CRE business communication is key. Quarem’s vantage software solution allows members of your team to communicate regarding projects large and small. The all-access solution reduces overruns and helps keep your project on time and under budget.
Putting All Your Eggs in the Wrong Basket
As a successful entrepreneur, you’ve known from the time you plunked your first penny into the pink ceramic pig that diversification and investment of your resources was a key to long-term success. With the demands of modern life and complexity of typical CRE portfolios having enough information to establish whether you have sufficient portfolio diversification can be a tough ask. Productive, efficient and highly developed property management software, like that offered through Quarem, begins by summarizing and storing the most critical features and categories of your individual CRE portfolios.
But this is only the tip of the time and money saving iceberg. Sophisticated property management software allows for real-time reporting in areas such as costs, revenue and overall profitability. Want to know what percentage of your property is industrial vs office space or whether five-year leases are out performing two-year? With Quarem’s sophisticated solutions, we have you covered in these areas and many more. Whether your CRE portfolio is big or small, Quarem’s CRE property management software will help optimize your business and get you trending up in growth.