Thursday, October 10, 2019

Golden InfoNuggets - AUG - Business, CRE, Tech, Blockchain and AI

BUSINESS, COMMERCIAL REAL ESTATE, FINANCE and TECH GOLDEN INFONUGGETS

We use a powerful method of sharing - post #GoldenInfoNuggets on Social Media multiple times daily or in regular emails (every 5-15 days).  We’ve been sharing the essence of articles and a few powerful comments regularly.* 

Commercial Real Estate, Technology, Blockchain & AI

Andreas Senie (11 years - sales, real estate).   "HOW #TECH IS CHANGING #CRE (#Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited -  Lnkd.in/dy4UH_b): 
  • Some things about CRE are immutable - it's a #relationship-based business.
  • How we form and nurture those relationships has been radically changed by #communication technology which radically opens up the number of people, places and ease.
  • Technology is a big differentiator, putting you in front of the right people and making sure you know the answers to the right questions,' 
  • #AI will grow to become increasingly important in making businesses make decisions more intelligently.   Digsy.ai, a real estate CRM, uses AI to give brokers actionable information to better generate and pursue leads."
  • CRE Collaborative will also soon be rolling out AI features to optimize its value in 2020. Now #MachineLearning algorithms are running to gather and learn about the site's data and inform the AI."  Lnkd.in/di7C75D
  • Watch the Webinar [see in the blog]
Louis Columbus (20 years - IT, marketing).  "#MACHINELEARNING IS REVOLUTIONIZING #MARKETING (#Technology #Analysis #Finance #Business #Data #PropTech #Research #Expansion #Investment #Startup #CRE; edited - Lnkd.in/dHx4-F7):
  • Improving customer experiences / support;
  • Personalized customer care, new product development;
  • Real-time personalized advertising; 
  • Message targeting accuracy, context;
  • Reduce customer churn, streamlining risk prediction and intervention models;
  • Price optimization and price elasticity;
  • Demand forecasting, assortment efficiency and pricing in retail marketing;
  • Cross-sell and up-sell strategies by product line, customer segment, and persona; 
  • Lead-scoring accuracy;
  • Sales projections by segments and microsegments;
  • Determining best sales offers, incentive and programs to present."  Lnkd.in/dx2wVzB
EC&M.  #AUTOMATION BECOMING #CRE CORNERSTONE (#Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #STEM #Startup; edited - Bit.ly/2KUtVbt):
  • Building Automation Systems (#BAS) have seen momentous advancements in the past century, redefining ‘comfort’ and ‘safety’ of building occupants. 
  • The implementation of automation systems in building infrastructure better each year, as #technology grows steadily in Architecture, Engineering and Construction (#AEC). 
  • 1950s - 90s saw building automation systems grow from pneumatics to electronics to Building Information Systems (#BIM), with ‘easy-to-use’ systems to complement this evolution. 
  • Larger buildings continue to be at the forefront of the adoption of building automation systems, lately,  installations ascended in small- and medium-sized buildings. 
  • So there are a plethora of opportunities for new entrants in new projects, as these property owners remain biased toward new companies offering attractive deals over the ‘well-established’ traditional suppliers."  Lnkd.in/eNhhzfr

Max Ball noted (#CRE #Technology #Analysis #Finance #Business #Data #Startup #FinTech #PropTech #Research #Expansion #Investment #SmallBusiness):

Entrepreneur Magazine's:  #FUTURE OF #PROPTECH (Lnkd.in/fNkEu4w):
  • A 20-year Overnight #Success
  • Mortgage #Tech
  • #Tokenization
  • Housing as a #Service." 
Promodo's "2019 RENTER SENTIMENT REPORT (Lnkd.in/em2bxhy):
  • Almost half of renters wouldn't be able to afford a cash security deposit right now - but security deposit alternatives could be a game-changer for them.
  • High up-front costs are preventing renters from moving into the homes and apartments they want.
  • Most renters worry that they won't be able to pay rent.
  • Paying rent causes more stress than jobs, student loans, credit card bills, and political issues."
Nivideous. "ROBOTIC PROCESS AUTOMATION (#RPA) – the ARMY of ONE (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited; Article Video Webinar):
  • Middle management understands that a legacy system can’t be replaced just yet and the difficulty of producing #documentation for tasks that can only be accomplished when the employees have the time to complete them (a task that is often way down on the list of priorities). 
  • The idea of a fully mapped-out process #model and performance metrics are nice in theory, but the importance of simply getting the job done is too great. 
  • The charts created by the data officers simply pull the reports from the latest MIS but little thought goes into #profiling the more manual, labor intensive work."  
  • Sounds like every other automation #implementation we've known - you must KNOW and DOCUMENT the processes BEFORE you can automate them."  Lnkd.in/e7mZstt

Apoorva Verma (6 years - IoT) for noted TechMediaToday's "#IoT and #HOTELS NEXT BIG THING in the #SERVICE SECTOR (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/fntM_-2):  
  • Microscopic room customization
  • IoTelectronic key cards (on phone)

Tech HQ.  "#CIOs in CHARGE (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/dFHDWX5):

  • Critical role [which has been for decades] - the push for #DigitalTransformation sets the Chief Information Officer as the executive most effective at driving organizational change.
  • Changing boardroom dynamics - digital transformation had strengthened #collaboration across the #Csuite, but blurs #responsibilities, #priorities and #strategies, so need to focus on communication.
  • Quelling concerns across the company - #educating departments, maintaining #transparency, clarifying decision making and establishing #metrics and #reporting." Lnkd.in/ebStjPA

Edureka.  "#DATASCIENCE vs #BIGDATA vs #DATAANALYTICS," a good, well-illustrated overview and comparisons of these overlapping areas in the #Data world. Saved for briefing clients and management.  Contents (#Technology #Analysis #Finance #Business #Data #Startup #FinTech #PropTech #Research #Expansion #Investment #SmallBusiness #STEM #CRE #AI #Blockchain #DataScience #MachineLearning #DeepLearning; edited - Lnkd.in/fnpAW-R):
  • Introduction to Each;
  • What they Do;
  • Skill-Sets Table;
  • Salary Prospects;
  • A Scenario Illustrating The Use Of Data Science vs  Big Data vs Data Analytics, using Netflix and how they join forces in achieving a goal;
1. Understanding the impact of QoE on user behavior;
2. Improving the streaming experience;
3. Optimize content caching;
4. Improving content quality."  Lnkd.in/eaStSkn

Proprius.  "HOW to OPTIMIZE DATA MANAGEMENT with MACHINE LEARNING (#Technology #Analysis #Finance #Business #DataManagement #Startup #FinTech #PropTech #Research #Expansion #Investment #SmallBusiness #STEM #CRE #AI #Blockchain #DataScience #MachineLearning #DeepLearning; edited - Lnkd.in/eWNFvFj):

  • Identify Objectives First, then Base the Foundation on Them
  • Know the Intricacies of, and Reasons for, Your Data
  • Prepare for Fast and Frequent Iteration in Testing and Production


Commercial Real Estate, Finance and Business


National Real Estate Investor.  #CRE #ECONOMISTS #Advise #INVESTORS (#Predictions #Technology #Analysis #Finance #Business #Data #Startup #FinTech #PropTech #Research #Expansion #Investment #SmallBusiness #STEM #GoldenInfoNuggets; edited - Lnkd.in/gdkGuQh) [Stay Positive]:
  • Richard Barkham, CBRE. 'Hold your nerve, be ready to buy from those that lose theirs. Suggested: workforce housing and luxury high street retail; lots of tech demand in smaller markets; high-amenity locations. Consumers are confident.'

  • Barbara Denham, Reis Inc. likes: 'apartments the best best (most recession-proof); tertiary markets in places that few are considering; Millennials and young families considering more affordable cities than the coasts; offices in either gateway or non-gateway cities; industrial is still pretty safe.'
  • Jim Costello, Real Capital Analytics. 'Do not let the day-to-day noise in the headlines distract you and force you into a panic. Ask what opportunities will come for commercial real estate investors out of any potential downturn.'    Lnkd.in/eNnTXQc
  • Peter Muoio, Ten-X Commercial. 'In order to gauge the resilience or vulnerability of markets to a potential downturn, it really depends on how high vacancies are and how much development is occurring.'
  • Jim Berry, Deloitte. 'See the importance of real estate as a long-term and strategic part of their placement of capital. The US bodes well for certain smaller or tertiary markets and emerging parts of real estate such as non-traditional and mixed-use assets.' Lnkd.in/eFkXJ_h

Frances Brunelle (25 years - business broker).  "GET the BEST PRICE for your COMPANY (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/eqwJiap):
  • Have Financial Data Ready 
  • Have Customer Data Ready 
  • Have Documented Standard Operating Procedures 
  • Your Business Must Function Without You 
  • Have a Clean and Well-Organized Facility 
  • Younger Workers in the Mix 
  • Hire an Expert to Help You Navigate The Process 
  • Run it Like It’s Not for Sale 
  • Have patience and stamina during the sale process 
Christopher Hurn (24 years - sales, finance).  "BEST TIME in a GENERATION to PURCHASE #CRE (#Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup #STEM; edited - Lnkd.in/gWm2pkb):
  • You can diversify your retirement portfolio with real estate.
  • You won't have to pay rent (to others).
  • You have the opportunity to become a landlord.
  • You may be able to rent your building to your successor.
  • There are options for many types of businesses.
  • Rates are currently low.

Louis Vargas  (18 years - marketing; #CRE #Technology #Analysis #Finance #Business #Data #Startup #FinTech #PropTech #Research #Expansion #Investment #SmallBusiness #STEM #AI #Blockchain #DataScience #MachineLearning #DeepLearning) noted:

Small Business Trends'  "CUSTOMER EXPERIENCE (#CX) IMPROVEMENT #TIPS:
  • Automate User #Onboarding with Customer Education;
  • Get Actionable #Feedback to Find Out What Customers Really Think;
  • Cultivate and #ENGAGE an Online Community [ - acknowledge and interact with those who comment on your posts];
  • Get Quality #Leads from #SocialMedia;
  • Enhance Your Personal #Trust Level;
  • Master #Brand Loyalty;
  • Use a Process-Level #Value Proposition;
  • Boost Engagement Through #Stories;
  • Utilize #ManagedInbox Optimization for Email Marketing;
  • #Prepare VERY WELL Before Starting a Social Media Campaign [or anything else worthwhile]."  Lnkd.in/dKt6Kbi 
Sales Hacker's "PERSUASIVE WORDS and PHRASES:  
  • Persuasive, personal words that show empathy and spark warm visioning; 
  • Avoiding confusing words and concepts; 

Ron Filian (20 years - real estate, finance) noted World Property Journal's "CAP RATES FOR COMMERCIAL REAL ESTATE ASSETS STABLE IN 19H1 (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/eNMJqJr):
  • Office cap rates for stabilized CBD properties decreased slightly to 6.67% in 19H1"
  • 'Office cap rates should remain stable for both CBD and suburban properties over the next six months' --CBRE's Global President of Capital Markets
  • 'Strong market fundamentals continue to attract investors to industrial assets.'
  • Retail cap rates for stabilized grocery-anchored neighborhood/community centers remained stable at 7.48%.
  • 'High street retail continues to be attractive due to demographic trends.'
  • 'Multifamily cap rates and expected returns on cost remained at historically low levels.'
  • 'Hotel cap rates remained stable.
  • 'Cap rate volatility between markets should not be viewed as indicative as it is being driven by changes in sales composition rather than actual movements in capitalization rates.'" Lnkd.in/eUHb6xB

Financial Poise. "#PE #SPONSOR vs #FUND.  The #fund is the investment or #capital used to buy a controlling interest in a private company, while the #sponsor is responsible for #operating the fund.  Types of PE Funds (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/dZYnZnx):
  • Leveraged Buyout Funds (#LBOs) for later-stage or mature companies with goal of selling  or IPO.
  • #VC Funds for start-up or early-stage companies with little control or stake in the company, using equity only.  [Company can then seek lesser-expensive debt].
  • Growth Equity Funds for mature companies looking to enter new or emerging markets or expand.
  • Real Estate Funds for real estate and REITs, requiring higher amounts of capital.
  • Funds of Funds, allows investment in diversified assets managed by other fund managers."  Lnkd.in/dwMiRts

CRE Herald US COMMERCIAL LENDING INCREASES, 19Q2  (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup #STEM; edited - Lnkd.in/eeZAMfS):
  • Q1 slow start following market volatility at year-end - gaining traction, Q2.
  • CBRE Lending Momentum Index, (tracks the pace of US commercial loan closings) at 244 (2005 = 100) in June, up by 2.3% from March, + 20.8% YoY.
  • Life company lenders had another strong quarter - 26% of non-agency commercial mortgage closings, +21% YoY.  All others - Banks, Other and CMBS - contracted YoY.
  • 'Life company lenders quoting fixed- and floating-rate deals, with LTVs up to 65% (higher on select deals through higher-yielding structured loan products' --CBRE Capital Markets.
  • Banks led - 35% of loan closings.
  • Agency originations continue to keep pace with the market.
  • Underwriting on loans were slightly more conservative in Q2."  Lnkd.in/eeemZ7D

Ron Perr (30 years - security, real estate).   "THE EVOLUTION of #CRE and the #ONLINE #MARKETPLACE (#Technology #Analysis #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/gRpEYf6):
  • Some people refuse to enter a brick-and-mortar store, when there's better selection, lower prices, and fewer "attitudes" online.  [Yes, retailers often hire the cheapest clerks with NO sense of #CustomerService, then wonder why customers flee.]
  • Media sources have morphed into digital platforms, and so have customers.
  • [One solution, maintaining the same-size real estate, is to enlarge the backroom #warehouse, staffing the smaller front with high-tech, "high-touch," well-paid stellar #agents who appeal to busy #agents who appeal to busy #GenX and #Boomer populations, can find what the customer "needs" effectively, online in inventory or elsewhere, then deliver it instantly from the warehouse or in 1-2 days. Can also be the pickup/return location for online order, as well as a true help center such as #BestBuy's in-store #GeekSquad.  Makes the great #experience touted as a retail saver.]
  • Like retail, 90% of CRE searches start online.
  • But online search leads to frustrated customers who'd really like more than a taste - a full meal takes a #CommercialBroker to offer, counter, acceptance, escrow, due diligence, contingency waiver, fund and close which are still the norm. Lnkd.in/gKzzEna
  • But CRE pros MUST appeal to the online searcher, who knows the many portals. Just using use social media as a way to advertise available properties doesn't cut it.
  • Content is the 'pull' that portrays expertise, inspires action, and entertains or educates as a means of demonstrating knowledge [and starts the #TrustBuilding process].
  • Retail Must Change - especially for commodity consumer goods - but so must CRE.
  • [Malls are closing due to lack of creativity, action and] are desperately in need of reinvention, such as outdoor retail, food, and entertainment centers.  [Centennial CO's Southglenn Mall became a mixed-use community, and is adding more community options.]
  • Mall owners are creating community centers that become destinations where guests can meet, eat, be entertained, and shop - 'reuse' or 'remix' old retail spaces.  Lnkd.in/dMtzE_Z
  • Malls are now asking 'what else can these locations be used for?'.
  • Possibilities beyond the ubiquitous mall food court: hotels and other services, such as dry cleaners, salons and barber shops; fitness, with gyms, yoga, Pilates and other workouts centers; recreational activities for families, such as rock climbing, children's activities, even indoor water parks and amusement parks; and medical care uses. But one of the promising concepts is adding live/work alternatives.'".

Terry Painter (22 years - finance) via Forbes:  "BEST and LESSER #CRE #INVESTMENTS (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/dj8_Ce2):

BEST
  • Apartments/multifamilies - renting is the only option for many young people and preferred for seniors.  Vacancy <5%;
  • Self-storage - performs well during good or bad times, easy business to run;
  • Mobile home parks - IF most tenants own their homes - upkeep is landscaping and light maintenance.
NOT AS DESIRABLE
  • Single-tenant, single-use buildings - highest-risk - if leaves, ALL empty.
  • Multi-tenant CRE - still risky [if under 8 units];
  • Strong name and AA credit reduces risk.
TRENDS
  • Micro-apartments command the second-highest rent per square foot of all multifamily properties;
  • Co-working space has become popular in large metros;
  • Triple net lease credit tenant property cannot be beat."  Lnkd.in/dhQDfJs
See ANALYSIS at end of article.

Michael Houge, (38 years - real estate) noted Cushman & Wakefield's "IN THE OPPORTUNITY ZONE - LOCATION. TIMING. CAPITAL (#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup; edited - Lnkd.in/gSSy6gD):
  • #OpportunityZones, aimed at low-income areas, garner a high level of attention and capital - see program benefits. 
  • In the 138 large OZ funds, most have national mandates and intend to invest in multiple product types.
  • Most deals are likely to get done in areas with strong CRE market fundamentals and/or where  economic revival is beginning.
  • Most funds (66%) and an even larger share of total equity (85%) intend to invest across multiple  markets.
  • Timing is key! Once capital gains are realized, funds should be invested 180 days afterward. Lnkd.in/gz8skDJ
  • Eligible real estate investments comprise new (re)developments, capital-intensive renovations including those involved in managing and developing real estate. 
  • The inclusion of operating business in opportunity zones means that significant additional capital will be raised.
  • Working capital can be held in cash and short-term debt securities for up to 31 months, and they have 6 months to identify projects for newly-raised capital and 12 months to reinvest proceeds from asset sales - 
  • Extended when delayed while awaiting a government action, so in highly regulated markets, or ones that are not shovelready, will be easier to do than previously thought.
  • This program is unlikely to make commercially unviable projects viable. The extent of the  tax benefit depends on the success of the underlying investments, enhancing upside. Evaluation of individual deals should focus on the specifics of each investment. Lnkd.in/dNwUMBs
Charles Wendel (40 years - banking, publishing).  "BANKS:  LISTEN TO US!  Issues have not changed much in 20 years(#CRE #Technology #Analysis #Finance #Business #Data #FinTech #PropTech #Research #Expansion #Investment #Startup #GoldenInfoNuggets; edited - Lnkd.in/euebvvk).
  • Expectations are high, based on #eCommerce;
  • Reality check - banks aren't using #digital well;
  • WHAT customer experience!?
  • No proactivity - banks only passive;
  • Why customers DON'T move elsewhere:
1. The view that banks are all the same; 2. The static inertia factor is strong and protects many current banks;3.While FinTechs may possess the necessary technology, they lack the size to meet the lending needs of the middle market or larger customer;4. Some companies stay where they are because of the individual banker serving them;5. Lower rate often wins out over anything else.
  • Concerns have much more to do with organizational issues, responsiveness, proactivity, and creativity than a bank's digital capabilities, so …
  • Unless banks address these "analog" issues, the digital message that many are selling may fall on deaf ears." Lnkd.in/eKWyuDy

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NOTE:  We do ANALYSIS of Real Estate LEASEES, FINANCING, PROPERTIES, BUSINESSES and STARTUPS, and 

Broker the debt Finance Options
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