Golden-Nugget Shares - Business, CRE, Tech and AI - Oct 8-12

Also publish on LinkedIn and our GoogleGroup InfoPortal

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

We use a powerful method of sharing - post “Golden Nuggets of Information” 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.* 

Please email the links to your related articles to Articles@ProsperSystems.biz - especially the following topics, the subjects of our deepening research.  We'll share them as Golden Nuggets for our followers, and notify you when we do, so you can re-share and re-mind your followers of your content.  

BUSINESS and COMMERCIAL REAL ESTATE GOLDEN NUGGETS - OCTOBER 8-12

Commercial Real Estate (CRE), Technology and AI

Linda Liberatore of Forbes. DIY INVESTOR / PROPERTY MANAGER
hashtagTECHNOLOGY hashtag(#CRE #Technology #DIY #PropTech, edited - Lnkd.in/e-bgBpd):

• "I use my SOFTWARE along with other industry-leading products to manage over $150M in investors' assets. Staying on top of the changes in technology helps me refine clients' rental strategies and maximize their rental profits. hashtag

• #PROPTECH, When real estate investing boomed, property management became a reported $77Bln business as real estate investors grew to an estimated 7M. Starting with enterprise property management solutions, less expensive cloud-based solutions became an attractive option. A suite of choices has slowly surfaced and grown in popularity as developers realized the industry had a gap in the operating process."

• "NEW HORIZON FOR #CRE TECHNOLOGY. Real estate investors can examine the data they've accumulated with an eye for value-added changes - to compare to industry leaders that are tracking behavior and anticipating needs. Use the information available from machine learning and AI to better manage the asset and identify needs."

• "You can send surveys before, during and after meeting a prospective tenant, then tweak your active ads based on this feedback. Some is 'open-source intelligence' and often is overlooked. Being deep in day-to-day tasks may blind owners from hearing context clues left behind in a showing."

• "Is the popular nearby café a plus for your unit? Does your online application have useful questions for insights or preferred behaviors? Google and Facebook know who is more likely to spend a weekend in the CBD vs the wilderness, so should you utilize the information you have on what around your units attracts particular types of renters."

• "Once Amazon Web Services (AWS) and Google Cloud Sharing became available, smaller industries took the intellectual property found in their own databases to track behaviors and make business decisions. With #MachineLearning, #DeepLearning and #AI, we can easily work with the massive amounts of data collected in the leasing process.

• "Real estate investors have shared positive feedback on new, unique ideas that AI will help them explore in the tasks of #PropMgt. They envision savings in all the areas of property rehab, leasing and maintenance. New uses and emerging tools lead us to cognitive insight as we embrace data that allows us to deepen our client relationships and fuel client satisfaction with real estate portfolio growth."

Michael Beckerman. CRE INFORMATION REVOLUTION (#CRE #AI #Technology #PropTech #VR #Startup #Expansion  #Research, edited - Lnkd.in/gw6yrbc):

• "CRE's biggest asset is information: aggregating, cleaning, understanding, tracking changes and relaying key insights to clients. What will CRE professionals gain from this information revolution?"

• "UNDERSTANDING BEHAVIORS. Insights into consumer routines are changing space utilization. We’re learning how people move around shopping centers and individual stores, where people congregate in office spaces, and how people seek information. This info improves building designs, more efficient use of spaces, and optimized leasing rates, as well as when people want to buy, invest or sell their assets, so we can target our marketing, improve prospecting and increase marketing ROI."

• "EFFICIENT BUILDING OPERATIONS. The data gleaned from the sensor networks, mobile apps and IoT enhances building performance. Combined with the power of multiple properties across a portfolio, future property managers will glean more insights into how to run buildings more efficiently." 

• "MORE INSIGHTS.  Someone could take commercial real estate information and do what Zillow’s Zestimate has done for residential properties.  CRE is more complicated, but we’re already moving to a more transparent industry thanks to data-access and information-sharing platforms like CompStak. The mysteries start to unravel when you can compare similar building classes or similar customer bases." 

• "BETTER ASSET MANAGEMENT and leasing cycle data will improve deal management and crucial operational decisions, like seeking a new vendor. Glean important market data when debating renovating an existing space or relocating the entire office. New projects use drone technology and virtual reality to track progress on new developments to ensure delivery on time and on budget, as well as surveying existing buildings for potential capital repairs and maintenance."

• "There’s no doubt the CRE industry is changing.  Thanks to our increased access to information, we are providing better services now.  The future brings even more promise as our systems get smarter and keep learning from our gathered intelligence."

• TELL US about your Startup, Expansion, Major Change or CRE Research. 

Commercial Real Estate (CRE) and Business

Scott Lynn and Kevan McCormack. LOOSENING BANKING REGULATIONS TO IMPACT hashtagCRE (#CRE #Business hashtag#Investment hashtag#SmallBusiness hashtag#Trump, edited - Lnkd.in/egaDxw6):

• In May, US legislation provided relief for smaller regional banks who have been burdened since 2010. Most notably, the changes will likely allow for land to be contributed to development projects at market value versus the original cost basis, and can dramatically reduce the amount of cash equity needed to close development loan.

• Other changes have freed up fresh capital and resources for banks to lend to small businesses at the local level. Further efforts have been made to simplify banking regulations and remove sources of confusion."

• "Smaller banks will NOT be required to reserve so much capital to cover potential losses on their balance sheets, and won't be burdened with the constant oversight and 'health testing.'"

HIT Advisory Group LLC. ESSENTIAL DATA POINTS FOR HOTEL INVESTMENT ANALYSIS (#Data #Hotel #Investment #Analysis, edited - Lnkd.in/eAfu7ws):

• "Simplicity is essential when learning how to underwrite a hotel. You often only need a few data points to pull together a solid financial model. Further, a good understanding of the market falls to a few factors relating to cost of capital and recent transactions. The six data points below should be enough to build a simple quick analysis, and they may inspire you to dig deeper into each broader category."

• "PENETRATION INDEX. Hotel room sales is a highly competitive business - guests can shop hundreds of hotels on a single website with a variety of comparison tools, including maps, pricing, and past guest reviews. 'Competitive set penetration' shows the relative strength of a subject property against a selection of competitive hotels – occupancy, average daily rate and RevPAR. Tour the properties consistently to establish quick rules of thumb for how to underwrite a hotel."

• "PROFIT MARGINS. The USALI standard hotel financial statements have three major expense categories – departmental, undistributed and fixed – and opportunity exists at each expense level for improving operational efficiency and profitability. Become a massive consumer of profit margin data at all levels to build mental connections between profitability at all levels."

• "PER ROOM INVESTMENT. All money invested divided by the number of rooms represents the high watermark for investment profitability. It’s difficult to be profitable if your basis is too high. Collect recent comparable sales for sale price per room, cap rates and replacement costs to see what your total per room investment should be in today’s market."

• More next week

Much more from earlier at LinkedIn.ProsperSystems.biz

PROSPER SYSTEMS, LLC (.biz) • Kenton H Johnson (.com), Founding Member

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

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*GOLDEN NUGGETS OF INFORMATION are: 

• Quickly consumed, memorable and powerful
• Linked to the source for much-deeper information
• Edited and summared showing understanding and thought leadership
• Mainly shared content from professionals in Commercial Real Estate, Business Consulting, and Thought and Executive Leadership
• Shared on:  LinkedIn (company), LinkedIn (personal), Twitter (automatically from LinkedIn), then highlighted on our Blog (weekly), The News Funnel (weekly), as a LinkedIn article (weekly) and our GoogleGroup InfoPortal (weekly/semi-monthly)
• Posted originally at LinkedIn.ProsperSystems.biz.

Of those who we've shared, the savvy ones Like or Comment on these "Golden Nuggets" as additional exposure, as well as serve the community and remind their followers of their wisdom.