Why Utilizing Property Benchmark Data is Critical During Economic Downturn
In the midst of market unpredictability and fears of a recession, property benchmark data may be beneficial for CRE professionals to better anticipate these changes and inform smart decisions about their CRE portfolio. In a number of different areas across the country, expenses are also spiking – especially for line items such as utilities and insurance. Property benchmarking enables you to visualize trends in the market and identify action items that may help optimize your portfolio during this challenging time.
Lobby CRE hosted a webinar with the Building Owners and Managers Association (BOMA) in which we spoke about how to submit your property benchmarks to access competitive data and uncover how your portfolio is performing in relation to the market. Watch the webinar now to learn more, or read ahead for three competitive insights you can gain by leveraging Income/Expense IQ Benchmark data.
1) Expense Optimization
One of the primary roles of a property manager is to drive costs down while maintaining a high-quality property and offering high-quality services to tenants. With benchmark data, you can compare your property finances to others in your market, including Total Income, Total Operating Expenses, and Net Operating Income (NOI). These property benchmarks can help identify areas to optimize expenses, such as with regards to maintenance, repairs, and amenities upkeep. Ultimately, these insights help your property perform better and keeps your owners and asset managers happy.
2) Metropolitan Statistical Areas (MSAs)
It can be helpful during unpredictable market conditions to get a glimpse of what properties in your area, or an area you intend to operate in, are doing in order to maintain cashflow. You can use MSA-specific benchmark data to extract these relevant insights. By stacking your asset(s) up against similar properties in the area, you can determine whether your per unit property values, utilities, taxes, revenue, concessions, and more are in line with the market. You can also use this data to determine whether or not you want to acquire an asset or expand into a specific market.
3) Acquisitions/Exiting
When you’re looking to buy or sell an asset, it can be helpful to understand how that asset is performing in comparison to others in the market. Essentially, market volatility impacts every aspect of commercial real estate, and property benchmarks provide insights to help property owners optimize their investments for maximum resilience. Because of the market’s unpredictability, commercial real estate owners need to regularly review their portfolio’s performance, gauge current positioning, and accurately forecast a path forward.
How Can I Submit and Access Property Benchmark Data?
Income/Expense IQ Benchmarks is a partnership powered by Lobby CRE with data from the National Apartment Association (NAA), the Building Owners and Managers Association (BOMA), and the Institute of Real Estate Management (IREM) . The partnership enables benchmark users to directly connect to their property management systems (PMS) instead of entering line items one-by-one. Users can easily upload and import their property and financial data. With the Income/Expense IQ Benchmarks, you can effectively visualize how your portfolio ranks against market benchmark data and uncover actionable insights and opportunities to operate more efficiently and drive property values. Submit your 2022 income and expense data now!
