Blog July 1, 2021

4 commercial real estate metrics to drive financial success

By Andy Welkley

In an era where real estate firms are inundated with data, it can be hard to know what data is most important to your business, and it can be even harder to uncover that information in the first place. CFOs and Controllers in real estate firms need to track commercial real estate metrics to ensure the success of the business, but gathering all the necessary data to calculate key metrics is difficult as it can be scattered across the organization. With all the manual work it takes to track down data, the metrics will likely be out of date by the time you get around to using them.

With a business intelligence and analytics solution, commercial real estate firms can visualize their current business metrics, monitor KPIs and drill down to the granular details to make strategic data-driven decisions and deliver for investors.

Here are just a few of the financial metrics that your commercial real estate firm can and should be tracking with an analytics solution:

1. NOI

The right analytics solution can not only give you a visual representation of your net operating income – it can also show you the underlying metrics that influence it, like capital and operating expenditures. With the capability to drill into these stats, you can better understand the ways in which they impact your business and better identify how best to prioritize your organization’s time.

2. Receivables tracking

All businesses have certain expectations when it comes to payments from their tenants, and with the power to keep track of your receivables in an easily accessible dashboard view, you’ll be able to identify late payments and assess risk and impact to cash flow based on that information.

3. Budgets vs. actuals

Your organization’s budgets are designed to meet the strategic goals of the business, and by not tracking to those budgets, you run the risk of missing your marks. With an analytics solution, you’ll be able to gain visibility into deviations and track your budget against your actuals, without the hassle of digging through data. Comprehensive dashboards can provide relevant information tailored to your business and personalized needs while still giving you the flexibility to expand upon them if necessary.

4. Occupancy

A high-level view of your occupancy rates gives you not only a better understanding of your tenants, but a more thorough picture of how your space is being used. A solution that helps you visualize occupancy metrics and tenant mix can equip your business with a new understanding of the relationship between your leases and your physical space, instilling more confidence in your strategic planning.

Visualize CRE metrics with analytics tools

A powerful business intelligence and analytics solution can give you a more detailed view of the CRE metrics within your organization, equipping you with the ability to make data-driven decisions and measure success. Learn how MRI Analytix Portal and Data Store arms your business with the ability to assess trends and identify outliers and prepares you to become a data visionary.

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