Purchasing a new software program is never an easy task. Commercial Real Estate managers need to think about multiple department needs and potential redundancies of their existing technology. They’ll often look at immediate factors such as costs and direct business needs. But beyond value and compatibility, what are the other factors to consider when buying new CRE tech and software? We’ve assembled six tips below:
Storage and Capacity
While the software may look impressive during demonstrations, it’s important to question how and where the software will be housed. Is it an enterprise system that requires user infrastructure and capacity? Or is it a web-based software as a service (SaaS) platform? Can the organization accommodate the structure? If not, what are the indirect costs associated?
Storage is also a key consideration. Does the back-end data need storage space or is it a cloud-based system? Are there additional storage costs beyond upfront installation fees?
Staffing Knowledge and Resources
It’s also important to ensure your organization has the knowledge and capacity to use the new CRE technology. It may be underused if your firm isn’t up-to-speed on the program and architecture, or lacks the resources or emphasis in using the program. Identifying day-to-day users, and how they use the software, is vital.
Redundancy and Integration
Transitioning from legacy systems to new software is a key consideration. Understanding how the new program will integrate with existing platforms is critical. When evaluating CRE tech, keep in mind departmental needs, data standards and collection as well as potentially outdated software.
Maintenance and Capital Investment
Beyond initial costs and resources to install the software, how is it going to be maintained? Is there a corporate capital and financial plan for the software over time? Who will track, recommend and approve investments or upgrades to the system? Often, capital investment in technology is viewed as a one-time purchase. But this limits its functionality over the long term.
Scale and Flexibility
A key consideration for CRE tech is how it can be scaled and adjusted over time based on changing corporate needs. Is the platform relatively rigid for user inputs and reports? How does the software accommodate expansion, be it technologically or organizationally? How is the base data structured to accommodate changes in reporting requirements or standardization?
Training and Services
Once you’ve purchased a software program, there are more steps needed to ensure it’s used effectively. A few necessary matters include training and customer support. You’ll also need to assess the software based on both its functionality as well as service capacity. How is the software going to be implemented? How much will the purchaser have to do? What does the service provider recommend for company-wide training and ongoing resources?
Benefits of CRE Tech
As the commercial real estate industry continues to change, the need for scalable, flexible and integratable CRE tech is now more relevant than ever. 4tell™’s Real Estate Portfolio Solutions offers this streamlined integration. It can help effectively manage asset data in one centralized database. What’s more, it can prepare real estate organizations for new industry developments and keep them aware of their portfolio at all times.
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