The Value of a CRE Investor Portal
Don’t Let a Concerning Outlook Get in Your Way
Deloitte’s recent 2023 commercial real estate (CRE) outlook painted a complex picture of the industry and its direction. More leaders are worried about revenues than in previous years’ surveys. Simultaneously, 48% of CRE companies plan to cut spending on technology. And yet, despite those concerns, 66% of professionals expect conditions in 2023 to improve or at least be stable. There is a seeming imbalance here, one that even Deloitte calls out:
“Failing to invest enough in technology could be short-sighted. Real estate firms with the flexibility and risk appetite within the current environment can get ahead by exploring how technology can unlock potential in the long term.”
The past year has been a challenging one for CRE firms, to say the least. Natural disasters, trends in how people work, and more — to say nothing of inflation, rising rates, and increasing regulation — have made recent months significantly trying, and many are concerned about the road ahead. While some markets have seen booms, such as multifamily properties, others have continued to struggle.
However, the last thing the CRE industry needs to do is back down from these challenges. A key opportunity for many firms to capitalize on is one that has been a problem for years: inefficiency. Plagued with a variety of manual work, GPs and their teams have a greater need now to step back, evaluate current processes, and make improvements that will drive better results for their investors and themselves.
Key Features That Make Investors’ Lives Easier
There are a number of areas where GPs can make improvements, one that stands out — and impacts all other areas — is investor relations. Many firms and professionals today are relationship-driven and go about that work manually, providing answers and support to investors where technology solutions can add even more value. One of these to consider is a commercial real estate investor portal.
While many firms have adopted and are continuing to explore new technologies, and may even already have a CRE investor portal in place, it’s essential that it checks multiple boxes. Here are some examples of what such a solution should allow your investors to see and do:
- View their investment details 24/7/365 — Your investors might have questions or want to know where they stand with their investments in your assets. This doesn’t need to be a manual process for your team. Rather, your investors should be able to view their investments to date in your asset, by asset, with the ability to view data in a way that works best for them. This information must be accessible wherever they are, too — whether that’s in the office or on the go.
- Explore all of their transaction information — At times, your investors might need to know how much they’ve contributed to a certain asset and when those contributions were made. Rather than requiring them to interface with your team for those details (further adding to your administrative workload woes), a self-service solution will give them instant access to drill down into various transactions and get the information they need at any time.
- View complete distribution details — Your investors will want to know when and how much their distributions are, in addition to receiving them in an efficient way. Rather than process distributions manually (as has been the case for many years), automating distributions and providing a commercial real estate investor portal allows them to view all distribution-related information, as well as manage important details such as tax withholding and adjustments.
- Instantly access detailed reporting — Investors will want to know how their investments and the assets overall are performing. Giving them access to in-depth reporting will take this often burdensome work off your team so they can focus on more timely, strategic tasks. Consider implementing technologies that give investors access to the latest reports and figures, such as asset income, expenses, delinquencies, vacancies, fees, and more — all in a matter of clicks. Additionally, a proper commercial real estate investor portal will give them access to information for their own reporting purposes, such as K1s.
Consolidate These Technology Needs in One Commercial Real Estate Investor Portal
Covercy is one of the leading commercial real estate investment management solutions that also provide everything GPs and their teams need to better serve their investors and maximize their performance. In addition to providing a highly customizable CRE investor portal, our platform provides complete fundraising capabilities, automated distribution payments, embedded banking (yes, you can consolidate your banking needs in one tool!), and more. We’re laser-focused on what will streamline work and improve performance for GPs and their investors, and we’re not stopping anytime soon.
If you’ve been looking for a solution to help you navigate 2023 with confidence, our team is here to help. Connect with us today to see our solution in action.