2019 has been filled with several breaking news stories and unique trends, including college admission scandals, Area 51 memes, and more superhero movies that I can count. In the midst of these emerging events and stories is a tale as old as time – economic downturn.
When will it hit?
How bad will it be?
Who will be impacted the most?
A quick Google search will present articles upon articles of one expert saying this, and another expert saying that. The timeline and impact of the next downtown seems to depend on who you ask. At the end of the day, it’s the internet – you’re never going to get a straight answer.
The economy transforms in cycles and there will always be ups and downs. We can’t say with certainty when the next downturn will hit, but we can discuss a piece of advice that I believe in whole heartedly: Always Be Prepared. This core Scout motto is something that we can all agree on and strive for during this time of uncertainty.
So, what does “always be prepared” look like for professionals within the commercial real estate industry? Let’s take a look at some of the ways technology, specifically lease administration software, can help professionals weather the next recession.
Organizing the Fundamentals
The key to preparing your portfolio is ensuring that you have all of the fundamentals of your portfolio organized in one spot. Not only does this ensure that you have your ducks in a row, it means that you can potentially make a plan to navigate through a downturn.
The implementation phase of adding lease administration software into your management processes gives you the chance to fully audit your current portfolio. This is your opportunity to:
- Abstract all of your leases or review any that you already have abstracted
- Build current and future income/expense schedules
- Identify all upcoming critical dates and set up automated reminders
For tenants, this audit gives you an idea of all upcoming expirations and renewal options. With downturn in mind, what will your next move be?
For landlords, this is a great time to reflect on your occupancy/vacancy and anticipate how your tenants might be impacted by a downturn. Additionally, you can work to identify various ways to strengthen your portfolio, such as property or market diversification, or investing in upgrades that will allow you to compete in the market during a downturn.
With your real estate data, documents and critical dates organized and stored in one place, you can begin to evaluate the potential impact a downturn will have on all current and future projects and take steps to implement strategy for anything that may come your way.
Quarem simplifies real estate management by providing one, sophisticated platform for all of your data. Not only does it provide users with powerful Lease Administration and Lease Accounting, it helps you track all of your important FF&E assets, generate custom reports, create helpful task timelines for all deals & projects, and build automated critical date reminders.
As you work to prepare for the next economic downturn, consider adding a demo of our software to your checklist. It’s one of the best ways to get a personalized view of the software and discuss portfolio management strategy with CRE experts.