In Commercial Real Estate Data Makes All The Difference
Investment teams agree that their acquisition decisions should be data driven, but many feel the way they collect and utilize data during the underwriting process can be improved. But what do we mean when we say “improved data?”. Improved data is quick access to that lease comp buried in an Offering Memorandum that allows your team to push valuation $5m for best and final bids. It’s knowing the average cost per square foot of utilities in Austin, Texas, because you can pull that data point from the asset you own down the street. These are the data points that change the outcome of deals.
When comparing valuations for a commercial acquisition, the difference usually boils down to the ability to push underwriting assumptions. However pushing underwriting assumptions only works when your team has conviction that they can achieve the new assumptions. Acquisition teams need access to reliable data points faster than ever to drive their decision making and grow their portfolio. In commercial real estate, fast, organized and easily accessible data makes all the difference.
Capturing the data
While acquisition teams have always utilized data, it has been a slow and laborious undertaking to access, collect and organize. Information is often stored in outdated spreadsheets, PDFs, emails or sometimes only exists in one team member's memory, increasing the likelihood of a key detail slipping between the cracks. Customers using Origin have the ability to capture these data points without the manual entry through our Data Service - automatically extracting key data from unstructured files. Our analysts behind the data service have experience in CRE and understand the importance of accurate data used during the underwriting process.
Organizing the data
Equally important to capturing the information, is being able to easily find and leverage this data to your advantage. Origin makes it easy for acquisition teams to find, filter, sort, and pull data points during the underwriting process. The Altrio data service is able to transform unstructured data into a structured, easily searchable database of valuable information. With a structured, searchable database, your data becomes a weapon to realize your competitive advantage in the marketplace, not a chore to organize and collate.
Consolidating internal and external data
When underwriting a new investment, analysts require data from both internal and external sources to make the most informed decision. Customers using Origin can access comps from their owned assets, comps buried in Offering Memorandums, internal comps and market transactions at the same time. Internal data that comes directly from your acquisition team are the most context-rich and can be the difference-maker on winning a final bid. For external data, teams typically rely on broker information and expensive data providers. Origin utilizes valuable 3rd party connections with partners like RCA and Cherre to bring in sales comps, building information, local crime statistics, demographics, and more. In instances when the internal and external information disagree, users are able to choose the correct information from a convenient drop down list, ensuring the highest level of accuracy.
Source and screen more deals
One of the unrecognized advantages of efficient data management is the ability to screen more deals and break into new markets. No one wants to spend an hour manually entering data to a spreadsheet for a deal they know will be a quick pass. Instead, Origin gives acquisition teams the ability to capture data on “quick passes” with the click of a button. This allows teams to increase their data collection scope and begin to aggregate data in markets before they have a physical presence in that location. For example, if an acquisition team wants to invest in Glendale, Arizona, they can start to collect data on that market several months in advance by emailing Offering Memorandums to the Origin Data Service. Once the right opportunity comes around, that team now has considerable market intelligence built up without having to rely on public information or local brokers. That team now has the ability to underwrite and close quickly with a high degree of conviction.
Realize your competitive edge
In a competitive market, investment teams need to be taking advantage of every opportunity to make informed decisions quickly. Informed decisions come from quality data. This is where Origin sets you apart from the competition.