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Commercial real estate development software can have a powerful positive impact on a firm’s operations. By integrating a modern platform into their workflows, companies can expedite their cost reporting workflows, cut spending, and gain real-time project visibility. Modern software solutions enable development teams to become considerably more productive.
However, the best commercial real estate software programs offer users something beyond greater operational efficiency. AI-driven platforms provide users with proactive intelligence insights that allow for better project planning, decision-making, and risk mitigation. You can leverage the advantages of real estate development platforms to make your projects more lucrative and achieve predictable outcomes across your portfolio.
Rock Solid Data-Driven Project Planning
A lack of visibility is one thing that’s consistent in the contemporary commercial real estate landscape, regardless of asset class, project complexity, or geography. The looming threat of a recession and rising inflation makes it difficult to predict where the market will be next month, let alone next year. Because of that uncertainty, developers might find securing funding from investors for future projects challenging.
While the headwinds affecting the marketplace won’t end, developers can assuage their backers’ concerns with data-driven project planning. The most effective way is to create a road map informed by your organization’s institutional knowledge.
For example, let’s say you want to launch a medical office building. The property will need a waiting area, exam rooms, and surgical suites to appeal to primary care physicians, dentists, and ophthalmologists. Accordingly, you'll also need to recruit design consultants who can create well-lit rooms that make patients and doctors feel comfortable. You’ll also need to hire architects, MEP engineers, and structural engineers to build a complex space that can accommodate medical testing equipment. And you want to vet those service providers to ensure that they won't cause any scheduling or budgeting problems.
Basic real estate software platforms can help you reach some objectives because they function as digital filing cabinets for old project files. One of your team members could sort through those old records to get a rough estimate of the medical office building’s costs during pre-development.
But the best commercial real estate software can give you a much more accurate picture of your anticipated costs. Modern AI-powered solutions can collate bid, invoice, and change order data across your portfolio. With that information, you can decide which vendors would be best suited for the project, precisely calculate their retainage, and establish a set of project milestones.
Creating a budget with data-driven spending expectations shows potential investors that your project has rock-solid foundations that can withstand intense headwinds.
Proactive Alerts Prevent Budget-Busting Pitfalls
No matter how good your planning is, you will inevitably encounter problems that could create significant budget overruns. Successfully closing out complex projects requires working with hundreds of vendors and carefully monitoring their invoicing and the work progress. However, the sheer volume of documentation involved with real estate development makes it difficult to identify trends that indicate when a minor issue is turning into a major problem. However, the best commercial real estate software can provide proactive alerts about potentially budget-busting complications.
These platforms connect a wide array of data points and configure them into a clear-cut dashboard. A quality platform will display a concise visual summary that includes total spend across the project’s timeline, potential exposures, remaining contingencies, and the real-time impact of individual change orders. And it will automatically warn you if any budget item is in danger of exceeding its commitment.
Providing users with actionable proactive insights is a key differentiator between the best commercial real estate software and traditional programs used by developers.
Unlike outdated legacy programs, modern platforms aren’t limited to offering retroactive analysis. They can present you with mitigation options – like budget reallocation – that will let you put out fires before they start. Even better, they can show you cost-saving opportunities to help you build a financial cushion against unexpected shocks, like a vendor going out of business in the middle of predevelopment.
The best commercial real estate software solutions give you the tools to make rock-solid project plans and proactive insights that provide flexibility if those plans hit a snag.
Outperform the Competition by Staying on Schedule
IBIS World researchers value the U.S. commercial real estate market at $1.2 trillion this year, up 2.8% from 2021. With so much revenue at play, development firms have incredible opportunities in various asset classes and geographies. But to turn those opportunities into highly lucrative projects, you need an edge to impress owners and financiers. Thankfully, the industry’s best commercial real estate software can give you that advantage by helping you keep your projects on schedule.
AI-driven platforms give developers real-time granular visibility into their projects. That means they can give you proactive insights into issues that could create significant development delays.
For instance, your accounting department could inform you that a recent vendor change order revealed a critical building material has become inaccessible due to an international trade conflict. That supply bottleneck could have a domino effect, resulting in important deadlines being missed and multiple budget lines going into the red. In addition to the financial fallout, the scheduling disruption could shake the faith of your stakeholders and prompt the project’s cancelation.
In that situation, leading commercial real estate software can help you mitigate the impact of the materials logjam. The Best Commercial Real Estate Software will let you see the outcome of different budget scenarios, like a change in materials or a redesign. Its predictive insights will enable you to quickly overcome potential scheduling hurdles and assure your backers that they made the right decision in investing in your project.
Tag(s): Real Estate Technology
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