Many Commercial Real Estate Managers understand the importance that quality and efficient information plays in improving bottom-line shareholder ROI. Equally important to many ownership structures is the management of its portfolio’s Net Asset Valuation (NAV). It’s also well known that preserving commercial property demands a substantial investment of time, energy and capital. This oversimplification of a multibillion-dollar industry problem has created the requirement for proactive asset managers to rethink their Property Inspection, Reporting & Project Planning Programs. Select managers have unlocked impressive gains through building asset preservation programs like AMRR’s Commercial Asset Preservation Program (APP).

The Real Cost of Reactive Building Management

When an honest evaluation is taken, most managers will admit their team follows the traditional model of reactive building repair and maintenance. This doesn’t mean that teams neglect Capital Expenditure Planning, however the planning is commonly based on lagged data and reactive measures. With such an approach, the cost to complete repairs are often significantly higher. As a result, budget allocation often goes to the most noticeable and dramatic of issues, while the critical ones that can significantly impact CAPEX later go unattended. These reactive plans often rely heavily on verbal or email reporting, which often increases stress load of front-line managers resulting in less than favorable results.

What Is AMRR’s Asset Preservation Program?

The APP is a state-of-the-art solution that provides portfolio data capture, site inspections and consolidated reporting to its users. This results in digestible and actionable information for Asset Managers to execute on their fund’s ultimate strategy. The five pillars of value provided are;

1. Leverage: Utilization of Drones, AI Machine Learning, other technology for efficient inspection work

2. Speed: Processing and Return of building data 10 times faster than traditional “boots on the ground” inspection processes

3. Accuracy: Digitizing high-resolution, interactive site maps and satellite measurements

4. Comprehension: Unified reporting consolidated into a summary digestible for top level managers

5. Collaboration: Inclusion of many exterior physical plan operation costs for usable financial benchmarks and forecasting including;

a. Roof Maintenance, Repair & Replacement

b. Landscape Maintenance

c. Lot Sweeping

d. Snow & Ice Management

e. Pool Maintenance

While the auxiliary benefit to the APP are exponential, in its purest form, the APP helps commercial asset managers increase their ROI and maintain operational costs by providing intelligent building analytics.

In contrast to conventional building inspections and reporting, AMRR’s processes and technology enable the quick collection and presentation of thousands of data points during the assessment phase. With quantifiable data, issues prioritization, detailed budgeting and expert recommendations, AMRR’s APP takes the guesswork out of CAPEX planning. Some of the direct assistance provided to asset managers include;

· Interactive Facility Mapping and Imaging

· CAPEX budgeting and fund allocation models

· Warranty and insurance claim funds capture

· Furnishing of expert-reviewed Scope of Work Recommendations

The AMRR Track Record So Far

AMRR via its Commercial Asset Preservation Program has successfully delivered value for a range of CRE Funds and Facilities. A few of our most recent partners include;

· CNL Healthcare Properties, INC: APP covering 71 senior and assisted living facilities

· Westdale Real Estate Investment and Management: APP for over 120 multifamily facilities

· Pampa Independent School District: APP for multiple K-12 facilities

In the words of an APP Recipient

“AMRR recently provided condition reports for all of the roofs in our portfolio, allowing us to identify and plan for near-term replacement needs as well as identifying several roofs that had material warranty issues. AMRR assisted us in the process of obtaining the warranty dollars and implemented the roof replacements. As well, it has been helpful to have you all as a single point of contact...” - Matt Ragsdale

- Vice President of Development and Capital Projects, CNL Financial Group

Real World ROI for CRE Portfolio

For a look at the hard numbers from a real client, the table below illustrates a massive 1169% return on capital invested into AMRR’s Commercial Asset Preservation Program.

Program costs listed subject to equal applied multiplier for client confidentiality purposes

Preserve Your Commercial Asset with Intelligent Building Analytics

An Asset Manager’s need for reliable, accurate and timely building information is by no means new, however the ease and availability of such information is. Thanks to AMRR’s commitment to solving the root causes of eroding building asset valuations, many managers are experiencing impressive program returns. As with most endeavors, the separator between success and failure is clarity and preparation. By proactively investing in clear and reliable building analytics, AMRR’s Asset Preservation Program transforms data at rest to a vibrant and powerful toolset ready to work for the astute asset manager.

Data at Rest: The True Culprit Behind Eroding CRE Asset Values