How Analytics Are Creating New KPIs In Real Estate

Propmodo

Nov 11

In 2016, Rudin Management, one of the largest real estate companies in New York City, announced the public launch of Prescriptive Data, a building operating system, after developing and utilizing the software in-house for some years. “This was purpose-built in response to, and in the face of, certain specific challenges that Rudin Management was facing,” said Sonu Panda CEO of Prescriptive Data. Their Nantum software helped Rudin reduce their GHG emissions and save $5.5 million a year (for several years in a row) on energy costs alone. “So, as a result, while we talk a lot about energy savings, [or] we talk about how we can really turbocharge the efforts of organizations to pursue and make progress against their ESG and sustainability goals, we do all of that through the lens of asset management.”

But sustainability is just one important metric for today’s real estate managers. The KPIs, or key performance indicators, in real estate asset management are changing. A central challenge for active asset managers has been the inability to get meaningful data by which to calculate KPIs. A new breed of smart tech is illuminating this data for investors like never before. “You can’t do anything clever within a building, whether it be for a building operator or for an asset manager until you can unlock that data,” Panda explained. Measuring retention, building performance, predictability, speed, and costs are KPIs that have been vastly improved by integrating smart tech into buildings and running the data through software like Nantum.

“Retention is at the top of this list, because that’s fundamentally where the revenue comes from, and that’s where the revenue persists.” Panda says. With smart tech, asset managers can be truly responsive to their tenants’ needs, be it hot and cold calls, or creating the right amenities package, and keep them as satisfied tenants for longer. “Our view is that data, especially surfacing data in the tenant space, is showing tenants how they can play a part in improving the overall ESG and sustainability footprints of the real estate that they occupy, [which] can dramatically change the dialogue between the landlord and operator and manager, and the tenants themselves.”