4 Commercial Real Estate Opportunities During Challenges
GP How-tos
Opportunity Abounds for Those Who Seek It
While rising interest rates, a slowing debt market, asset-specific challenges, and other issues continue to keep the commercial real estate industry on its toes, it’s worth remembering that every challenge is also an opportunity. And when it comes to commercial real estate opportunities, there are plenty available for professionals that are willing to consider new approaches and technologies.
Note that not every commercial real estate opportunity is a quick-hit revenue generator. Instead, some are opportunities to streamline many of the same repetitive processes that have kept GPs and their teams from becoming more nimble and effective. That said, every improvement made can support new revenue as well as value creation for teams and investors. Let’s dig in and explore some of these commercial real estate opportunities.
1. Greater Access for Investors
While falling property prices aren’t good news for sellers and GPs, they can lead to more accessible investment opportunities for investors who otherwise might not have been able to get in the game. Additionally, falling prices and a slowdown in the debt market mean sellers may be more open to options as to where financing comes from, as recently discussed in the Commercial Observer’s State of Commercial Real Estate forum.
- More investors means more data to manage. Consider simplifying this important data management process to maximize service to current and new investors.
2. Add Value to Office Assets
While this class has seen significant challenges over the past few years, it now has distinct commercial real estate opportunities — particularly when it comes to adding value for tenants. Buildings that can add that value by helping them measure and meet their sustainability commitments or provide desirable amenities are expected to see continued demand. Office assets that aren’t likely to survive the current economic climate are being considered for conversion opportunities such as multifamily housing (and much is being done in the legislative sphere to provide funding and make these conversions happen).
3. Streamline Manual Banking
To date, much of the banking activity in commercial real estate has been manual — and incredibly tedious and time-consuming. Now, with the banking industry experiencing its own challenges and setbacks, firms would be wise to consider their approach. How is capital being protected? How can costs be reduced by streamlining banking processes such as payments and even opening accounts? And how can firms gain greater insight into banking activity by asset and fund? While more on the administrative side, this commercial real estate opportunity will reduce time spent on low-value tasks and enable teams to focus on better serving investors and managing assets.
4. Assess Your Tech Stack
While there are a number of tools available for commercial real estate firms today, some are focused on key processes or functions. Few enable teams to execute the spectrum of tasks associated with managing investors, assets, transactions, and more. Firms that have too many tools — or that are still using manual processes — should look to leverage technology that brings as many processes and needs into one system as possible. Examples include investor relations, fundraising, asset management, banking, investor distributions, and more.
Make the Most Out of Every Day with Covercy
Covercy is the first real estate platform that combines banking with investment management. From helping firms better communicate and manage their investor databases and raising capital for new deals to managing bank accounts and distributing funds to investors, Covercy provides tools and capabilities that cover a wealth of tasks and needs for GPs today. It’s one of the best commercial real estate opportunities available for firms looking to streamline processes while maximizing value and revenue.
