The concept of transparency is not unique to commercial real estate (CRE), and its meaning is pretty consistent across industries. Put simply, transparency means that information, data, and insights are shared openly. This exchange is the crux of investor relationships. Today’s investors don’t only expect firms to be transparent, but they also demand it. Investors want to feel confident that they are making an informed decision about choosing a sponsor and an investment, and transparency helps them to feel good about that choice.
Technology makes it easier than ever to be consistently transparent with investors by providing 24/7 on-demand access to investment data, enabling more regular and efficient communication, and creating an enhanced investor experience overall. Each of these factors drives better engagement and helps firms to establish and maintain a trusting relationship with their investors. As tech adoption accelerates, the desire for transparency amongst investors is becoming more noticeable industry-wide – and firms must learn to leverage technology to satisfy this demand.
Read ahead to learn how technology is driving transparency in investor relationships.
24/7 On-Demand Access to Investment Data
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 technology 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.
Because investors are aware that there is much more data available today than in the past, their expectations of firms to provide on-demand insights and analytics has significantly heightened. The types of data and analytics investors are seeking includes occupancy and financial data, market demand, and overall property performance. Forward-thinking firms are aware that these insights can greatly impact the investment decision-making process, indicating that providing more data transparency could increase their chances of securing repeat investors.
Increased Efficiency in Communication
Investors are busy and often do not have the time to respond to hundreds of messages from different people within the same team. With regular and consistent communication across the entire firm, trust and transparency is more easily created as investors come to expect by whom, how, and when they will be contacted. Using a CRM to manage communications with investors can help automate and streamline the communication process, ultimately increasing efficiency.
Most CRM’s provide email functionalities that allow firms to create bulk emails for sending information to more than one investor at a time. CRMs also serve as a single source of truth for investor’s contacts and other important information, which saves time. Investor statements are also an effective method for scaling communications and generating professional and branded statement. Using customizable templates allows firms to frequently deliver accurate and timely statements, which can strengthen investor relations and drive them to become more engaged.
Enhanced Investor Experiences
Technology makes it easier than ever before to be transparent with investors. And it’s making it more efficient for sponsors and investors to contact each other and share information. As such, technology leads to deeper connections and enables effective engagement between sponsors and their investors. A drive for transparency means an enhanced client experience as striving for transparency enables firms to provide additional context and security to the information and insights being shared with investors.
There’s no stopping the snowball effect of technology as it transforms commercial real estate and investor relationships from the inside out. Technology makes it easier than ever before to be transparent with investors. And it’s making it more efficient for sponsors and investors to contact each other and share information. As such, technology leads to deeper connections and enables effective engagement between sponsors and investors.
You may also be interested in CRE Trends in Investor Transparency.