How Origin Can Help Manage Commercial Real Estate Dispositions in a Shifting Market
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The commercial real estate market is in a constant state of flux, and macroeconomic factors suggest that the market will continue to shift in 2023. The current economic climate is characterized by rising inflation and interest rates, while geopolitical issues are having a profound impact on the global economy, such as disruptions in supply chains leading to an increase in raw material prices and consequent inflation in construction costs. As a result, the commercial real estate industry is facing significant challenges.
In the current economic climate, many commercial real estate investors are evaluating whether disposing of underperforming assets is necessary. Carrying properties in this high-interest environment can be costly, and at times, it might not make sense to hold onto them. Having appropriate tools and processes in place to manage a disposition strategy is essential if the decision is made to pursue this option.
Deal management platforms can provide valuable resources for managing dispositions. These platforms offer a range of tools and services that can help owners and investors navigate the complex process of disposing of assets, from analyzing the market to creating detailed workflows. By leveraging these platforms, owners and investors can make informed decisions about when and how to dispose of assets to optimize their portfolios.
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Take a tour of Origin to see what it can do for you.
Origin allows you to easily review your owned assets and analyze their geographic concentrations in either table or map form. Adding filters such as Asset Class allows you to identify where and how you might be overexposed. Once you've shortlisted the assets that you might consider for sale, you can easily compare them in a convenient side-by-side view, conduct a variance analysis on key metrics and identify which properties aren't meeting your expectations.
Disposition Workflow Templates can be easily created and applied to each deal to ensure that nothing falls through the cracks. These templates are customizable and include all the necessary stages and tasks required to successfully close a sale: such as developing and implementing a sound selling strategy, identifying potential buyers using Origin’s company database, establishing and documenting critical milestones, or tracking bids.
Origin's Comparables feature allows users to quickly find comparable sales to help develop an opinion of value. A combination of both Pipeline deals and sales recorded by Origin’s data partners, including RCA, can be saved against the deal for easy access and help you to paint a complete picture of your opportunity.
Origin's Deal Overview feature is a valuable resource for commercial real estate owners and investors, which can be used to create consistent briefs to share with brokers when soliciting BOVs, or to your investment committee when seeking disposition approval. The feature can be customized to highlight key information about one or more assets, including rent roll, unit mix, lease details, existing capitalization, financial activity, comparables, and underwriting models. Customizable visualizations such as tables, charts, and images, offer a comprehensive overview of each asset's composition and performance, enabling owners and investors to make informed decisions about their portfolio strategy.
In a market that is constantly evolving, having a tool like Origin can give you the edge you need to make informed decisions about your commercial real estate investments and dispositions. Whether you are a seasoned investor or just starting out, Origin offers a comprehensive platform to help you succeed. With its powerful features and capabilities, you can easily manage your pipeline, evaluate market conditions, develop sound selling strategies, and make decisions with conviction.