Presented By: Dealpath
Data Confidence Is Commercial Real Estate’s New Revolution
As the real estate industry becomes more complex, there is a critical need for next-level standardized data enabling professionals to unlock value with greater speed and precision.
Real estate as a global asset class is now predominantly driven by institutional ownership, where pooled capital vehicles, investment management firms, and professionals fiercely compete for deals across all property types and geographic markets. As the real estate industry becomes more complex, there is a critical need for next-level standardized data that enables those professionals to unlock value with greater speed and precision.
These advancements notwithstanding, the most powerful and game-changing element with this data revolution is the ability for institutional-level real estate firms involved with the acquisition, financing, development, and disposition of assets to consistently and efficiently organize and analyze data throughout the investment cycle.
Traditionally, real estate firms have cobbled together reports, data, and analytics through a combination of legacy software, which often do not interface well, or at all, or by spending enormous resources attempting to customize customer relationship management (CRM) systems. Such inefficient processes put decision-makers in a position of plotting a course based on information and data that might already be outdated.
As the industry’s tool for standardizing, organizing, and leveraging data throughout the asset lifecycle, Dealpath serves as the single source of truth by providing cutting-edge real estate software, a command center for the institutional investor’s front office. This market-leading technology enables users to compile and preserve data in real-time by capturing and retaining new information, and uploading historical activity on every property opportunity regardless of whether a transaction was brought to completion.
The real estate industry is flush with data from innumerable sources that do not always align, and, in many cases, even contradict each other. The ability to verify data accuracy or update errors through a faster, more efficient process enables decision-makers to have greater confidence in their information.
And, because Dealpath’s proprietary software enables the collection and triangulation of an increasing amount of knowledge and data points with greater speed, efficiency and transparency, analysts are able to spend less time sorting through disparate information sources and executives are able to start leveraging the data immediately, giving everyone involved in the process more time to think strategically.
“With a multitude of variables always at play in a hyper-competitive market, every investor’s goal is to consistently arrive at the right answer sooner,” Dealpath co-founder and CEO Mike Sroka said. “Dealpath speeds up your deal process and decision-making with less redundancy and downtime to foster collaboration and strategic, predictive decisions, and to better manage risk.”
That’s why firms like Blackstone — which manages more than $200 billion of real estate assets globally — use Dealpath to provide vetted, real-time deal information, helping users both to dive deep into the minute details and zoom out to view the entire global pipeline.
“Dealpath plays a crucial role both in the beginning and the end of the pipeline funnel,” said John Fitzpatrick, managing director and chief technology officer at Blackstone. “When we initially approach an investment, it allows us to systematize that data and carry that data all the way through to our disposition process.”
Unlike in years past, when many real estate firms were — to varying degrees — at the mercy of team members who either hoarded information or simply were not adept at recording data for posterity, Dealpath captures and retains all data regardless of which team member inputs a specific piece of information, which greatly reduces the risks of information loss when team members leave organizations or retire.
In addition, rather than having to spend considerable time rebuilding data sets, creating new reports from scratch, or tracking down team members who may have access to specific pieces of information that have gone unrecorded, Dealpath captures and stores all data on all investment, acquisition, development and financing opportunities — all available at the users’ fingertips at all stages of the deal cycle.
Dealpath’s sophisticated software also enables users to sort their vetted data in a diversity of subsets as narrowly or widely focused on a case-by-case basis and specific to each user’s particular needs. Combined, these wide-ranging elements enable real estate professionals to pinpoint the most strategic investments, while weeding out those that don’t meet their firm’s criteria or fall short of financial benchmarks.
“Having greater confidence in your data enables you to deploy your resources faster and more effectively than ever before,” Sroka said. “Data is only as useful to you as you have verified its accuracy.”
In the ongoing battle to transact on desirable deals and know with greater confidence which ones to rule out based on your firm’s topline strategy, the need for faster and more accurate information will only increase over time.
“Blackstone feels strongly about leveraging data across our business and utilizing the best-in-class technology tools to further propel our business forward,” said Tyler Henritze, senior managing director and head of acquisitions, Americas at Blackstone. “Dealpath is that solution.”