Pereview is the only Life of the Asset® software platform supporting both debt and equity for the commercial real estate investment management industry.
What do we mean by that? And how does Pereview impact each stage of the real estate asset lifecycle? In previous weeks, we’ve examined the acquisition, underwriting, financing and closing stages. This week, we focus on asset management.
Asset management cultivates market value, so your investors and owners can increase their investment returns. Your asset managers make extremely important decisions to drive portfolio growth, ensuring your investment doesn’t depreciate. Working long hours daily to reduce expenditures, finding the highest and most consistent sources of revenue, mitigating liability and risk, asset managers focus on maximizing your property’s value.
How does Pereview help you?
The Pereview software platform puts everything an asset manager needs into one place and automates key business processes like: accounting actuals, property statistical data, tenant data with lease abstracts, financing, budgets, loans, forecasts, expenses, valuations, CapEx, documents and more.
I recently spoke with two clients and their SVP’s of Asset Management. One client has $650M of AUM and the other has $10B of AUM. Despite their size difference, the similarities were very interesting.
Discussing how business was prior to implementing Pereview, our clients explained how their asset managers managed the relationships with each of their Operating Partners (OP) directly. While this sounds managerial, it was quite the opposite and very much a constant grind. Every month it was the same thing – manually extracting operational and financial performance data from spreadsheets and PDFs, then manually entering that data into more spreadsheets. Thankfully, most OPs submitted their data on time every month. But it was still taking far too many hours of labor – data entry, phone calls, emails for clarifications and corrections.
Not only were both clients struggling with data management, but they also had their trouble children. It always seemed to be the same OPs over and over again who did not submit their monthly performance data on time. Having to repeatedly hunt down their problem children’s data prolonged the labor process even more. It was taking weeks to complete these reports before these high salaried and talented resources could start what they were hired to do – analyze the property expenditures, stay on course to increase the property revenues, reduce new potential risks, and create reports for the stakeholders to prove they were maximizing the property’s value.
Despite their size difference and the fact that it was the same process every month for both firms, one thing was the same – it was initially a junior asset manager at each company that first learned of Pereview. That junior reached out to Pereview to learn more and informed his upper management that there is a better way to manage their commercial real estate assets.
What were your first thoughts when the junior asset manager(s) came to you with a software idea that could help them better perform their duties?
They both responded with very similar answers:
“Well, my first reaction was to say, ‘we have always done it that way.’ To simply hear myself as I was saying it made me realize that with some of our growth, maybe it was a lot more work now. And other than just continuing to increase staff and build more Excel sheets, maybe we should in fact take a look.”
“We have always considered ourselves very tech savvy as a company. I guess suddenly my eyes opened to the fact that it was just really in other areas of the firm, and not in my department at all.”
How are things going now that you have implemented Pereview?
“The most immediate return on investment we realized was in using Pereview’s Data Management Services. My asset managers are no longer the ones trying to wrangle our monthly data from our OPs. They still manage the relationships, but they now spend every working day of the month bettering our properties.”
“We log in and our dashboards magically have our data. We are now able to perfect reporting to our investors – [reporting] that wasn’t delayed from needless hours, hunting for data in the first place, and focus on what matters the most, which is providing them a superior return. I am happy that my department is now finally tech savvy!”
Over the next few weeks, we will continue our deep dive into how Pereview impacts all stages of the Life of the Asset® – the next topic will be Pereview’s impact on all things Portfolio & Fund Management.