In an article published on Globestreet.com, Lisa Brown interviewed Waypoint CEO Diane Vrkic regarding the potential to increase CRE valuations still further through the adoption of technology. Here are a few highlights from the interview.
- In the interview, Diane reiterated a point discussed in our recent whitepaper, “The Time is Now.” Specifically, that saving money on operating expenses isn’t just good for boosting NOI, it has a direct and significant impact on net asset values. A 1% decrease in OPEX has the potential to generate $105 Billion in additional CRE value.
- This is important now because higher property transactions will likely compress returns on investment. So, it behooves asset managers to take advantage of the operational efficiencies that can come with adopting new technology in order to improve performance.
- Machine learning and smart technology are driving a revolution in the commercial real estate industry by making use of the information that is already there to improve analytics and optimize performance.
- There is huge financial upside to improving operational efficiencies. As Diane points out in the interview, one of the best ways to tap into this is to focus on processes that are currently cumbersome and time-consuming. Automating these makes it easier to find insights into how to maximize performance and returns.
- In 2018, Diane predicts that technology advancements will affect every aspect of commercial real estate, from operations and management to construction, leasing and transactions. The savings realized from this will result in massive additional asset value.
Read more of Diane’s comments about technology developments for the commercial real estate industry at Globestreet.com.