Today, commercial real estate investors are allocating more capital to investment deals than ever before. At the same time, there is increasing demand for greater transparency across the industry. With 2/3 of investors citing ‘degree of transparency’ as an important investment consideration, firms are feeling the pressure, both internally and externally, to become more open and honest with investors with regards to each of their transactions.
Fortunately, commercial real estate technology (CRE tech) makes providing transparency easier and more convenient than in years prior. By implementing CRE tech to manage and communicate with investors, firms are equipped with the tools to provide 24/7 on-demand access to investment data, regular and efficient communications, and data security.
Read ahead to learn different ways firms can leverage CRE technology to provide transparency to investors while creating and maintaining an ongoing, trust-based relationship.
Enable 24/7 On-Demand Access
CRE is an increasingly global business and one in which investors need instant access to key information regardless of time zone and respective business hours. To address these shifts, firms can use CRE tech to provide investors with 24/7, anywhere, anytime access to their investment performance.
Because the data and insights that are collected and stored by firms often contain highly valuable and sensitive information, including investment data, investors’ personal contact info, and private bank account information, transparency is a critical component of a healthy relationship between sponsors and their investors. CRE technology, specifically an Investor Dashboard, provides investors with convenient, secure, and unlimited access to data. This unlimited availability not only creates an opportunity to showcase a firm’s commitment to transparency, but it also becomes a way to further establish trust with each investor.
Investors are busy and often do not have the time to respond to hundreds of messages from different people within the same team. A CRM is a useful tool for quickly and efficiently sending relevant and consistent communications to investors. With regular and consistent communication across the entire firm, trust and transparency is more easily created, and investors will begin to expect by whom, how, and when they will be contacted.
Provide Insights that Enable Data-Driven Decisions
Firms can effortlessly meet shifting investor expectations while establishing a strong, trust-based relationship by providing data transparency. Investors know that there is much more data available today than in the past, driving their expectation of firms to provide on-demand insights and analytics. The types of data and analytics investors are seeking includes occupancy and financial data, market demand, and overall property performance – each of which help them to make more informed decisions. Forward-thinking firms are aware that these insights can greatly impact the investment decision-making process. This indicates that providing more data could increase a firm’s chances of securing repeat investors.
Read The Need for Transparency in Commercial Real Estate for more information about the importance of transparency and the role that technology plays in creating it.