Real Estate Dynamic Benchmarking
Real Estate Research Corporation (RERC) developed its Real Estate Dynamic Benchmarking® service to help commercial real estate professionals more efficiently analyze and compare their property-related data with other critical information via an interactive web reporting system. Customized around each client’s investment objectives and information requirements, the RERC Real Estate Dynamic Benchmarking® service provides a variety of valuable market intelligence, including property, portfolio, and industry analyses and reporting capabilities, and metrics involving investment specifics, operational information, or detailed data requests.
- Real Estate Dynamic Benchmarking®:
- Is continuously updated with new data as it becomes available.
- Is customizable to fit each client’s specific needs and includes the unique metrics that pertain to each client.
- Provides personalized solutions focusing on each client’s investment objectives, and reports data in a functional format for analysis.
- Styles for client portfolios include:
- Property and portfolio composition analysis by size, property count, and geographic distribution;
- Valuation assumption analysis to capture price per unit, occupancy levels, value deltas over time, and other characteristics.
- Cash flow attributes for income and cash flow, deltas, discount rates, and cap rates; and
- Dynamic value benchmarking against a peer group established by the National Council of Real Estate Investment Fiduciaries (NCREIF).
Real Estate Dynamic Benchmarking® can produce the following specific reports for clients. (More basic reporting options are also available and include Excel charts or graphs.)
- Portfolio Rate Analysis, which monitors the direction of investment rates, values, vacancies, and returns for properties within any commercial real estate account, thereby identifying value trends, as well as individual properties that may be viewed as undervalued or overvalued.
- Market Rate Analysis, which enhances the ability to more confidently and continuously mark-to-market an account by estimating a range for going-in capitalization rates, discount rates, and terminal cap rates, thus serving as a benchmark to monitor individual asset valuation conclusions and to check the consistency of rates of return across the entire commercial real estate portfolio.
- Forecast of Quarterly Cash Flows to help estimate future fund returns at a property and fund level by extracting quarterly cash flows for the operating assets via the appraisers’ ARGUS models, which allows quarterly income projections and forecasts of both income and capital components for the fund.
- Performance and Attribution Analyses are dynamic reports that benchmark and attribute a client’s fund performance relative to the industry (i.e., NCREIF) benchmark. The Performance Analysis is prepared from a number of different perspectives (property type, location, income return, capital return, total return), in order to provide an absolute assessment of the client’s performance within each breakdown. The Attribution Analysis is completed to evaluate the net value added to the portfolio, based on the fund's asset allocation and asset selection, which provides the client with the tools necessary to position the portfolio for future performance.
For more information about RERC's Real Estate Dynamic Benchmarking® capabilities, please contact Ken Riggs at 312-587-1900 or firstname.lastname@example.org.