Thirty Capital recently attended the IMN CFO/COO Forum in New York, New York. During the conference, we had the opportunity to participate in the Utilizing Data to Inform Decision Making & Increase Deal Flow panel. During the discussion, the panel of experts, moderated by Thirty Capital Financial CEO Kevin Swill, explored the types of data they rely on as they are evaluating and making deals, as well as how and where they obtain this information.
Read ahead for some highlights from their conversation!
Question 1: Where do we find data to help us when looking to acquire, refinance, or sell a property?
In the world of commercial real estate (CRE), the phrase “cash is king,” is commonly heard. But in today’s CRE landscape with climbing interest rates and rising utilities, insurance, and taxes, there is a lot of uncertainty around the ability to do deals and optimize cashflow. As such, a new phrase, “data is king”, has entered the building.
Due to market unpredictability, CRE professionals need access to the right data at the right time more than ever before. Decisions can no longer be made based on intuition or “what always worked in the past”. Instead, you need frequent, consistent, clear insights derived from credible data. This data is essential for being able to make informed decisions, whether you’re looking to acquire, refinance, or sell a property.
Overall, the panelists shared that they get their data from various data providers and sources.However, one of the challenges raised during the discussion was trying to manage multiple properties when they are spread across different property management systems. Kevin posed a critical question, “How do you get one true picture of your portfolio?” One panelist offered a solution – a centralized source that can pull data from different sources and provide a unified view.
In the end, the panelists acknowledged the importance of streamlining data into one cohesive platform, like Lobby CRE. Lobby CRE has revolutionized how multifamily firms access and use their operational and financial data. Operating as an all-in-one, cloud-based solution, Lobby CRE is designed to manage and optimize cashflow for faster returns to the Sponsor and Investors
Question 2: What data is important for CRE professionals today?
When it comes to the commercial real estate market, data isn’t one-size-fits-all. The data you use depends on what you want to analyze and the goal you are looking to achieve. Two key data points the panelists are particularly interested in studying are around the property itself and the submarket it resides in. However, the panelists pointed out one particular data challenge – without enough data in the area, it can be challenging to obtain accurate information. As a result, the panelists are on the hunt for reliable, consistent data sources.
Question 3: How can you determine if your data has been manipulated?
The panelists agreed that data integrity, which refers to the accuracy, completeness, and reliability of data throughout its lifecycle, is important. They discussed different factors that can cause data to be subject to manipulation. These factors include interest rates, the bid/ask dynamics between buyers and sellers, and the influence of conservative lenders. The consensus is that everyone needs to be cautious and use reliable data sources that prioritize transparency and accuracy to avoid any distortions.
The panelists emphasized the need for vigilance and market awareness to survive the current market. They shared sentiments that the market will remain unstable into 2024. However, they remain hopeful that things will return to normal in 2025. One panelist notes that “we just need to survive until 2025”. But as we navigate today’s uncertain market, the panelists made it clear that accurate, truthful data is a precious commodity in CRE. Knowing where to find and verify such data places you a step ahead of your competitors.
Interested in attending our next panel discussion? Follow us on LinkedIn for updates on where we are headed next!