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    June 2, 2022

    3 Ways Commercial Real Estate Software Helps Development Firm Owners

    Does the following scenario sound familiar?

    One of your project managers is interested in adopting commercial real estate software to help them run projects. You've seen demos and had in-depth discussions with sales representatives, but the outcome always seems the same; the software doesn’t offer any new benefit to your current process. 

    Either the software had you moving your processes to the cloud without adding efficiencies or force-fitting your process into software that wasn’t built for real estate development.

    It wouldn't be an unreasonable reaction if you swore off commercial real estate software altogether after that, but as we’re well into the 2020s, technology that was once only a concept is now a differentiator. 

    According to EY, 61% of commercial real estate companies have adopted a technology solution, while 35% are still piloting, evaluating, or assessing the market. There's a growing gap between development teams actively working with the latest technology and those that have avoided new solutions to old problems.

    As noted in the same EY report, "It is not surprising that the real estate industry in general lags other sectors in adopting technology. Companies hesitate at their own peril, risking that one day soon they will find themselves outmoded by their competition."

    Here are three ways commercial real estate software improves owners' lives by driving projects forward with added efficiencies leading to higher returns. 

    #1 Make More Money 

    What's the ultimate goal of any real estate project? 

    It's no secret that the mission of any project is to earn as much money as possible. And when your projects are being executed with processes from the early 2000s, you're leaving dollars on the table. This is because older workflows are centered around manual administrative work and reactive decisions.

    Old processes result in lower returns because: 

    • Project managers spend most of their time tracking project progress in convoluted spreadsheets instead of paying close attention to daily progress and making swift strategic decisions when issues arise.
    • Project managers, leadership, and owners lack visibility into real-time project data, only getting the complete picture once spreadsheets are updated after the fact. This leads to reactive decision-making that often can't completely resolve any budget discrepancies. 
    • The manual data entry required to track project progress will have keystroke errors. It's inevitable. And when that happens, project managers make decisions based on faulty data that leads project budgets astray.
    • With all of the above happening, your development firm may face a reputation decline that leads to fewer projects and less money. 

    The best commercial real estate software is built with developers' needs and pain points in mind and solves common development problems. Here's how: 

    • Automated data entry eliminates the time-sink of manually updating spreadsheets for project managers so they can proactively monitor project progress and make cost-saving decisions before it's too late. 
    • Real-time dashboards are automatically updated as new project information comes in, allowing project managers to spot negative trends and make adjustments in real-time instead of discovering budget overruns when reviewing spreadsheets. 
    • Automated data entry via your email-based workflows eliminates the potential for human keystroke errors, ensuring your team is always working off of the most up-to-date and accurate data.  
    • With a team that is now proactively making decisions and not spending too much time updating spreadsheets, you'll see an increase in projects that meet or exceed budget and timeline expectations. 

    Aging processes allow for mistakes far too easily. And errors add up to a substantial amount of money out of your pocket. You shouldn't have to worry about subpar performance on simple yet fundamental tasks. Your returns and reputation aren't worth it.

    [Guide] Start exploring the world of commercial real estate technology to find  the tool that solves your team’s most pressing problem area.

    #2 Maintain and Grow Your Industry Reputation 

    Suppose you've built a reputation as being a dependable developer. As technology advances, workflows change and those development firms that operationalize real estate development software will see better project opportunities. Just because there haven't been disruptive changes to real estate development in the past 20 years, doesn't mean complacency is the path forward. 

    You may be hearing rumblings of development firms excelling with new workflows built on the back of new technology now, but that noise will get louder and louder each year until most developers have mastered their new workflows and your firm is suddenly years behind, playing catch up. 

    Financial partners want to work with developers who use the most effective processes. When your firm is pitted against another, the team utilizing automation, AI, and data analytics will have a much better case, and it'll become the easy choice in just a few short years. According to EY, "the winners in this highly competitive space will be those who adapt and reap the cost savings and operational efficiencies that a fully realized technology platform can deliver. That is where investor capital will migrate to, widening the competitive gap even more."

    In 2022, gut-driven decision making, spreadsheet-based cost tracking, and backward-looking reporting are already ancient processes. To ensure your approach is keeping pace with the industry, you need to consider how technology can solve any gaps in your project performance and how you can market that technology as a key differentiator from the competition. 

    The developers who operationalize their technology first will ensure their team is a trendsetter instead of a trend chaser. 

    #3 Better Visibility into Your Projects

    With a slew of projects in different phases, knowing the details of each likely isn't your highest priority. But when a few projects exceed budget expectations and you can't pinpoint where things went wrong, you can start to feel a loss of control over your portfolio. 

    What if you could see how each was progressing at a glance? The latest software allows you to see performance in real-time. You can better understand which projects are tightly managed and which could use more of your attention. And you're better able to speak on projects to financiers when they check in. Overall, you have a better pulse on your operation. No more waiting for reports to break good or bad news. No more waiting until the end of a month to make needed adjustments. 

    Northspyre for Owners

    Northspyre equips owners with the tools to run a tighter, more efficient machine. By removing the minor budgeting mishaps that add up to significant profit losses, you'll enjoy higher returns, industry respect, and more ownership over your business. 

    Empower your team to make informed, data-driven decisions while reducing the number of low-value tasks on their to-do list. Eliminate 80% of your administrative functions without hiring an assistant, spend 80% less time on low-value tasks, and deliver projects under budget when using the right software.

    Ready to see what our real estate development software can do for your organization? Book a Northspyre demo today!

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