Advisory Banner

ADVISORY

ADVISORY NEWSLETTERS

The Fate of Construction Data: Who Will Own It?

Last week, I met with the CEO of one of the largest retail owners in the world. Our conversation centered around how he gets more leverage from having technology drive his day-to-day processes. But it’s not for the obvious reasons.

The dirty secret about owning buildings is that the cost of repositioning and construction is a black box. The time it takes for projects to get completed is a black box. Even the history of vendors with whom owners have worked can be a black box.

Why? Real estate investors do not truly own their construction data. Legally, the data belongs to them, or at least part of it, but consider the reality:

  • General Contractors manage the bidding process and owners often only see the final costs. So, who really owns the pricing intelligence?
  • Construction managers control timelines using their in-house software programs and owners receive general updates at weekly meetings. So, who really owns the “time to completion” statistics?
  • Project and property managers (internal and external) handle communications with vendors from their email inboxes and mobile phones. So, who really owns the job performance insights?
It’s not that owners are indifferent to the power of their data. We spend a lot of time with portfolio owners across North America and they often ask, "How can we aggregate data from past projects to make smarter decisions in the future?"

Owners are the ultimate risk takers in any building project, but without technology that aggregates and unifies insights from across their projects, their buildings and their entire portfolio, they are operating in a black box.

And that’s precisely why the retail portfolio CEO mentioned earlier values technology: unifying his construction data allows him to generate more value from his projects. As he said, "I want to combine technology and data to drive projects to completion faster which will get my tenants in faster and increase NOI. Then I cap that NOI and I've created real value for my investors."

What would happen if all owners took steps to own their data like this CEO?

For one thing, unifying construction data would help owners know as much about pricing as contractors. They would be able to get empirical answers to questions like:

  • What should the range of pricing be on a per square foot basis for lobby projects in Washington D.C. office buildings?
  • How long does it typically take for a retail tenant in a shopping center in the Northeast to get from demolition to occupancy?
  • How often do projects like the one I'm about to launch actually go over budget?
  • How are capital budgets in my portfolio tracking against their underwriting plans?
Having unified data to answer these questions allows owners to reduce contingencies on projects, create confidence in underwriting new assets, and deliver investors better returns.

Real estate owners who want to remain competitive need to truly own their construction data in order to drive project budgets and schedules – that in turn drive investor returns.

To learn more about this hot topic, join us for a NEW Precon Event, Construction Summit, that will be held on June 5 at The Cosmopolitan in Las Vegas. This Summit will delve deeper with specific sessions discussing: (1) bid process structure, (2) reforecasting for more robust capital plans, (3) leveraging historical data to drive down future acquisition cost, (4) timeline acceleration, (5) vendor relationships and (6) system integrations. Open to all registered conference attendees, register today!

Riggs Kubiak, CEO, Honest Buildings
Riggs Kubiak is the CEO & Co-Founder of Honest Buildings, the only project management platform built for real estate owners, backed by real estate owners. His passion for enabling urban progress project by project, building by building, city by city, has driven him to create a platform that is transforming the way that data is utilized and that capital is deployed by real estate owners and managers.

This Week’s Sponsor

RealFoundations is a professional services firm focused on helping companies that develop, own, operate, service, occupy or invest in real estate make smarter, more profitable decisions. From the building itself to the way it’s developed, operated and capitalized, no firm understands the inner workings of the entire real estate ecosystem as well as RealFoundations. We work hard, we tell the truth, and we do what we say. We Make Real Estate Run Better. www.realfoundations.net

Realcomm News

UPCOMING REALCOMM WEBINARS

Commercial and Corporate Real Estate Cyber Risk - Developing a Comprehensive Strategy - 10/25/2018

Hardly a day goes by that we don’t hear about a Cyber breach. The most recent of scale was Equifax, the credit reporting agency in which credit information of 143 million of its clients was breached. While most of the incidents we hear about involve data or financial theft, there is a looming threat…our built infrastructure. This infrastructure includes everything from power plants to dams, but also includes the millions of buildings we use every day to work, shop, learn, recreate, manage our health and more. The threats range from unwanted building access to pirating of video surveillance and everything in between. This webinar will focus on the entire spectrum of Commercial and Corporate Real Estate cyber challenges, solutions and strategies.

headshot for Jim Young
Jim Young Realcomm
Jim Young Co-Founder & CEO Founder of Realcomm Conference Group, an education organization that produces Realcomm, IBcon and CoRE Tech, the world's leading conferences on techno
headshot for Jim Young
Jim Young
Co-Founder & CEO
Realcomm
LinkedIn

Founder of Realcomm Conference Group, an education organization that produces Realcomm, IBcon and CoRE Tech, the world's leading conferences on technology, automated business solutions, intelligent buildings and energy efficiency for the commercial and corporate real estate industry. As CEO, Jim interacts with some of the largest companies globally pertaining to some of the most advanced and progressive next generation real estate projects under development.

headshot for Tom Shircliff
Tom Shircliff Intelligent Buildings
Tom Shircliff Co-Founder Tom Shircliff is a co-founder and principal of Intelligent Buildings, a nationally recognized smart real estate professional services company that was
headshot for Tom Shircliff
Tom Shircliff
Co-Founder
Intelligent Buildings
LinkedIn

Tom Shircliff is a co-founder and principal of Intelligent Buildings, a nationally recognized smart real estate professional services company that was started in 2004. Intelligent Buildings provides planning and implementation of next generation strategy for new buildings, existing portfolios and urban communities. Tom is a speaker and collaborator with numerous universities and national laboratories, a gubernatorial appointee for energy strategy and policy and founding Chairman of Envision Charlotte, a Clinton Global Initiative.

headshot for Sandy Jacolow
Sandy Jacolow Meridian Capital
Sandy Jacolow CIO As CIO at Meridian Capital, Sandy Jacolow oversees the firm’s nationwide innovation and technology initiatives that support the company’s brokerage, i
headshot for Sandy Jacolow
Sandy Jacolow
CIO
Meridian Capital

As CIO at Meridian Capital, Sandy Jacolow oversees the firm’s nationwide innovation and technology initiatives that support the company’s brokerage, investment sales and retail leasing businesses and growth activities.

headshot for Annette Prater
Annette Prater Brookfield Properties
Annette Prater SVP, CIO
headshot for Annette Prater
Annette Prater
SVP, CIO
Brookfield Properties

headshot for Ron Victor
Ron Victor IoTium
Ron Victor Founder & CEO Ron Victor is a Silicon Valley based technology entrepreneur with 20 years of experience and expertise launching new ventures at start-ups and fortune
headshot for Ron Victor
Ron Victor
Founder & CEO
IoTium

Ron Victor is a Silicon Valley based technology entrepreneur with 20 years of experience and expertise launching new ventures at start-ups and fortune 1000 technology companies. To-date he has enabled raising more than $30Million in start-up capital for multiple start-ups in silicon-valley. Ron has founded and led three companies to-date with successful exits. His latest venture is IoTium Inc. – a Silicon Valley start-up that provides a secure, cloud-managed, easy-to-deploy software defined network infrastructure for all IoT verticals.

headshot for Coleman Wolf
Coleman Wolf Environmental Systems Design
Coleman Wolf Security Practice Leader Coleman Wolf has extensive experience developing enterprise-wide access control and alarm monitoring systems, developing business analyses, and conduc
headshot for Coleman Wolf
Coleman Wolf
Security Practice Leader
Environmental Systems Design

Coleman Wolf has extensive experience developing enterprise-wide access control and alarm monitoring systems, developing business analyses, and conducting detailed security surveys and assessments of corporate offices, power generation plants, and facilities related to national critical infrastructure. Coleman has also managed numerous security system installation and upgrade projects. He holds a Master of Science, Computer Information Systems degree from Northwestern University and a Bachelor of Science, Electrical Engineering degree from the University of Michigan. He is also CPP (Certified Protection Professional) and CISSP (Certified Information Systems Security Professional). Coleman also holds the following Professional / Civic Affiliations: ASIS (Member of American Society for Industrial Security), Chairman of the ASIS Information Technology Security Council, and is an active member of the ASIS Security Architecture and Engineering Council.

headshot for Wade Hughes
Wade Hughes 5Q Partners
Wade Hughes CEO
headshot for Wade Hughes
Wade Hughes
CEO
5Q Partners
LinkedIn

headshot for Don Goldstein
Don Goldstein AdKahn
Don Goldstein CEO
headshot for Don Goldstein
Don Goldstein
CEO
AdKahn

headshot for Malcolm Hobbs
Malcolm Hobbs Join
Malcolm Hobbs VP Marketing & Market Development
headshot for Malcolm Hobbs
Malcolm Hobbs
VP Marketing & Market Development
Join