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5 real estate investment management trends to know

About one-third of real estate investment managers still rely on spreadsheets for asset and portfolio management. After all, commercial real estate is an industry with a long history of growth and change. It was one that was primarily built on relationships and rent rolls rather than on automation and algorithms. 

But as the market evolves and other industries digitize, real estate investors must adopt technical solutions to stay competitive. 

These five real estate investment trends in particular are forcing investors to invest in better technology.

1. Environmental, social, and governance (ESG) portfolios are on the rise

ESG funds keep gaining in popularity, and they’re not slowing down any time soon. It’s vital that investors leverage technology to evaluate the link between performance and ESG. To do that, they need to be able to measure non-financial asset performance, evaluate long-term value, and thoroughly report on risks using business intelligence (BI) tools. 

2. Retirement and pension income remains a relatively untapped source of capital

Every retiree aims to preserve wealth while also seeking income returns. Because of the move to self-directed retirement plans (from defined benefit to defined contribution), retirees now have greater agency and control over how they invest their money. The resulting capital pool presents a major opportunity for REIT market growth. But, first, REITs must have the technical infrastructure in place to scale

3. Owners are collecting rent in several ways, from traditional to digital

Half of tenants still pay rent using paper checks (compared to 39% paying digitally, 8% via money order, and 3% in cash). Having more payment options enhances the tenant experience, but it can complicate rent collection for operators without the right technology to process and track diverse payment types. Ultimately, operators should invest in technology that aggregates all data into a single source of truth

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4. Tenants expect a more personalized experience

Today’s on-demand economy has impacted tenant expectations. Just as they have a mobile app for everything else in their lives, tenants expect the same real-time access in their CRE technology. While it can be an investment up front, a tenant app or digital platform can streamline processes for all parties involved. Plus, cloud-based solutions pay dividends in the long run, as they enable cleaner data management and more informed business decisions.

5. As data usage increases, security and data protection become more critical

The more data that exists, the greater the need for data governance and security. Most CRE companies have yet to optimize how they capture and use proprietary data, let alone put data governance parameters in place. That leaves a huge gap and puts companies in a vulnerable position. These firms should be heightening security and working to stay ahead of the data protection and management curve.

Are you ready to invest in better technology?

Intapp DealCloud has successfully completed more than 800 deployments with the world’s largest capital market firms. DealCloud centralizes key information and financial models, so you can develop successful strategies and meet acquisition targets. Schedule a demo to help get your team up and running with our real estate investment management and development CRM.