On March 26th, VENTURE.co joined Investor Management Services (IMS), a cloud-based SaaS company for commercial real estate firms, in a webinar titled, “How to Adapt to Shifting Investor Expectations in the Commercial Real Estate (CRE) Industry”. Ron Rossi, VP of Business Development at IMS, and Trevor Nesbit, Managing Director at VENTURE.co, examined the following topics:
- current trends in CRE,
- technology creating a winning investor experience,
- adapting to future changes in CRE,
- future investor landscape (2020 and beyond).
VENTURE.co has noticed that issuers and sponsors use many disconnected applications such as e-mail, Google Drive, OneDriver and Dropbox, and various FTP sites, to send and store offering materials.
“Once the issuer is handling multiple deals–depending on the firm’s scale–the issuer may face inefficiencies in the monitoring and management of dozens to hundreds of investors.”-Trevor Nesbit, Managing Director at VENTURE.co
Issuers can struggle with compliant and secure data storage as well as the transfer of banking and wiring instructions. Investors need assurances that their personal information is secure. Technology can expedite and monitor deal distribution while streamlining compliance.
Today, CRE professionals use many applications to manage their offerings. Ron remarked, “Some of the tools being used are client management software, property management tools, accounting software, E-signature tools, Outlook, Gmail, Excel, Dropbox, and the white-labeling by broker-dealers.” Technology creates new and easily accessible investment opportunities, blockchain, workflow efficiency, and greater demand for technology. Trevor mentioned, “Technology is making more opportunities available, such as Opportunity Zones.”
Opportunity Zone Funds and Delaware Statutory Trusts, and other tax-advantaged real estate funds are growing in both access for and popularity among investors. Investors can defer and reduce capital gains taxes by reinvesting in low-income areas to promote business development.
“One of the key drivers for technology IMS has seen is coming from millennials and the new investor base entering the space… They demand tech, and they will not invest in companies that are not leveraging tech.”-Ron Rossi, VP of Business Development at IMS
Millennial and Gen-X investors and issuers expect to access investment information digitally, and what’s more, through a single login. “It is important for businesses to adapt to changes in the industry–else their business models may become irrelevant,” said Trevor. VENTURE.co and IMS have collaborated to remove the inefficiencies of manual investment subscription and reporting. Accredited investors enjoy a variety of CRE investment opportunities, and that growth is likely to continue as the investment process gets further simplified. CRE has begun to prioritize and leverage technology to foster a greater number of investment opportunities and more efficient and compliant execution. As the industry develops, we expect to see further emphasis on usability, efficiency, compliance and security.
To watch the webinar, register here