The ongoing digital transformation has become a given across industries, including the real estate sector, which has to keep pace with the rapidly evolving business landscape. The pace of change is so fast that it is hard to foresee how this sector will be reshaped over the next ten to 15 years.
Buildings completed in the very heart of Warsaw just 20 years ago are already being earmarked for demolition, as they no longer meet the latest requirements of tenants. While still faced with numerous challenges, landlords of older buildings who choose to draw on the assistance of a reliable adviser will be able to enter the digital age without even having to alter the building’s fabric.
Are there any effective solutions that analyse data generated by commercial properties? Is it possible to use such data to produce tangible savings for tenants and landlords, and as a result to make wiser business decisions and increase asset value? What other benefits could proptech tools provide in modern property management?
Savills is well-positioned to address these questions. In the fast-evolving property market, we want to be at the forefront of what’s next and to stay ahead of trends that we expect to soon dominate the real estate sector. Savills Property & Asset Management department has implemented two integrated business intelligence tools that support enhanced property management on behalf of our clients.
Portfolio Income Analytics (PIM)
“The value of your real estate investment is ultimately determined by the level, duration and quality of the rental income paid by your tenants,” says Prof Andrew Baum from the Said Business School, University of Oxford. How can digitalisation help with this?
Portfolio Income Analytics is a comprehensive solution for managing tenants’ income risk, developed for real estate specialists, investors and lenders. It enables an in-depth analysis of tenant, asset and entire portfolio risk. The tool uses algorithms that combine the credit data of the leading industry company Dun & Bradstreet, comprising close to 420 million business records, and specialist proprietary real estate analytics from Income Analytics (INCANS scores and ratings). The software performs a complex simulation taking account of various success and failure scenarios in tenant retention and performance. This provides the property manager with three online tools to assess the financial standing of all the tenants in a building – user-friendly reports on the strength of a tenant portfolio, the building itself, and more insightful data on rents and the performance of occupiers.
Budget Analytic Tool (BAT)
The Budget Analytic Tool is our proprietary tool that turns data into real savings. It enables property managers to make wiser decisions regarding operational costs. The app uses data to identify opportunities for driving operational costs down. It allows for more precise budgeting and generating the highest possible investment yield. It also opens up substantial opportunities to begin negotiations with subcontractors and suppliers, with an ultimate view to reducing the operational costs of a building, which is particularly relevant amid soaring prices and high inflation rates. BAT is a powerful tool that supports property managers in driving costs down and analysing current market trends.
The future of property and asset management
Being at the forefront of property and asset management, we are aware of today’s challenges and the top priorities for us are the pandemic experience and the situation in the real estate market: the growing supply of office space and its competition to older buildings. New technologies underpin Savills key growth strategy. While properties generate ever-growing volumes of data, we wish to provide our clients with tools that analyse such data quickly. In collaboration with our innovation manager, we implement proptech solutions on a large scale and select those that will benefit our clients. Looking ahead, we will continue to focus on the needs of our clients while harnessing modern technologies. Our aim is to stand out with the high quality of our property management services. In this we draw on our best practices and international experience coming from the growing scale of Savills business in property and asset management.