The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products
Issue link: http://read.uberflip.com/i/896341
NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS 4 NAREIM 1 2 3 Goby is an example Goby transitioned from a traditional, relationship-based model to a data-driven organization. We started as a consulting company, which is very people-centric. Over the years, the company has shifted into a software company that helps its clients maximize the value of their portfolios using analytics and sustainability best practices. That's certainly what we learned at Goby when we wanted to help our clients use analytics and data to drive their business. We had to shift our mindset as traditional consultants in order to help our clients do so. It was difficult for us, because in the past, we would always solve problems simply by throwing more intelligent people at the issue – just like most commercial real estate investment firms. Instead, we had to start with the data first, listen to what it was telling us, then implement it." For example, if a commercial real estate company is about to purchase a building, their first move is to send a group of their people to look at it. Becoming data-centric is not about removing the "people element;" it's quite the contrary, but it's about embracing data as a decision- maker at the table as you add that to your culture as a means to increase your odds for success. Or another example is an owner is accustomed to a certain number/percentage for their portfolio's net operating income (NOI). That becomes their perceived goal, because that's what the market is used to, that's what's acceptable, and that's what investors demand. They're "anchored" to that number. However, if they would allow themselves to become more data-driven and be open to changing their mindset, they will recognize that there's a lot of opportunity in the data to provide more operational efficiencies, better value and maximize the returns for their investors. They have to let those biases go and use the data to help them make decisions. STEP 3: SHARE THE DATA; TELL YOUR STORY Using data to drive better business decisions is important, however, some companies don't take advantage and promote that. The best way is to tell the world why you're a better company because you have a data-driven culture. Many of Goby's clients use data to tell a story and demonstrate their commintment to ESG, increased energy efficiency or operational improvements. Sustainability equals value, particularly in commercial real estate. Companies can demonstrate that they have a data-driven approach to monitoring utilities and track sustainability performance. Whatever type of company it is, it will find nuggets to tell its "story." For a commercial real estate brokerage or investment company, the ultimate story is that they outperform their peers because they more effectively interpret and use data as an asset. They understand and are abreast of what's happening in their business. If they make a capital investment, for example, they have the data to support the business case for that investment. If there's a high-net worth individual or institution looking to place capital with an investment manager – and they have choice between company A or B – why do they choose one over the other? If it's just the people, people change companies all the time. But if the company has underlying fundamentals of logical decision-making – that lives beyond just people. That's a better organization, a better steward of your investment. Clearly, working with data is good for a company's bottom line. Are you ready to take the leap? Humans did not evolve to be logical; we're not wired to be data-driven. Sometimes you have to go counter to the human condition and make the logical decision that the data tells you.