Commercial Investment Real Estate

JUL-AUG 2017

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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CCIM.COM July | August 2017 17 sharing information. While some parties within the multifam- ily sector adopted the proposed standards, none was able to gain enough acceptance to solve the issue fully. Changing Directions Automatic data capture, on the other hand, tackles the problem from a different angle. Instead of trying to change the data col- lection practices of the entire industry, the technology extracts the data from any PDF or Excel property management report. The system validates the data, processes it, and converts it into a digital standard. Where MISMO and MITS came up short — by not securing enough adoption across the industry — automatic data capture is poised to succeed by allowing for the conversion of all data, including information compiled from property owners who are not using any specifi c, agreed-upon standards. This standardiza- tion of data in commercial real estate will have a ripple effect. In addition to the effi ciencies that are created, the digital nature of the extracted information also lends itself to trend analysis. Through conversion into charts and graphs, visualized data is easier to understand than pages of numbers. The technol- ogy can assist analysts looking to identify trends and anomalies. Automated data capture and its enhanced insights help lenders in generating term sheets more quickly, help investment sales brokers demonstrate deeper understanding of relevant proper- ties, and enable acquisitions teams to uncover hidden upside value. In short, it will give commercial real estate professionals industrywide the ability to perform their core job functions more effectively. Of course, a universal standard for the exchange and analysis of property operating data does not exist yet. This achievement, however, will be possible soon. The technology to fully extract data from a signifi cant majority of property management formats already exists. Hundreds of acquisitions teams, investment sales brokers, lenders, and appraisers have already eliminated data entry from their job descriptions. While commercial real estate professionals may not have reached the promised land yet, complete standardization for the multifamily sector no longer seems far off. Elliot Vermes is chief executive offi cer at redIQ, a platform for capturing, processing, and analyzing operating data for multifamily transactions. Contact him at elliot@rediq.io. CCIM Institute's Fall Governance Meetings and Global Conference Oct. 14-18 | Westin Harbour Castle Toronto Are you ready to travel? Make sure you have a current passport and meet all requirements for entering the country Learn more at www.ccim.com/toronto

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