The Next Generation of Transparency, Efficiency and Value at the Desktop: Integrating Data into Software

03/25/2011 11:51

As RICS members, we constantly rely on technology and the introduction of new and innovative ways to conduct our business. Data integration, with the analysis tools we use, has been long discussed and is now emerging as a reality. Today, we can now immediately compare the results of our property or portfolio analysis against market data by property type and specific geography in one solution. This integration of leading market data in widely accepted analysis solutions creates more efficiency at the desktop, allows better decision-making and strategy execution, and brings an increased level of transparency to the markets. Strategic Partnerships ARGUS Software along with our strategic partners - Real Capital Analytics (RCA) and Investment Property Databank (IPD) - are delivering innovative solutions, which integrate world-class market data with the ARGUS industry-leading solutions employed for commercial real estate analysis and investment management. For example, the Market Data Integration (MDI) functionality within ARGUS Valuation – DCF version 15 (ARGUS DCF), launched in January, allows clients to obtain real-time feedback using comprehensive RCA market data for improved valuation and analysis. ARGUS DCF automatically compares results alongside quartile distributions of RCA yield rates and prices per unit for a specific property type and location worldwide. From there, it is possible to access more detailed information from RCA for that particular market through the Trends and Trades reports and other resources, and then update the ARGUS model accordingly. Market Data Integration IPD and ARGUS will deliver market data integration and asset management solutions for our mutual clients in the United States later this year. Clients who use ARGUS and subscribe to IPD services will be able to instantly compare portfolio or property-level results alongside sector-level total returns and cap rates for US metro areas. ARGUS clients will also have the option to upgrade to the IPD Portfolio Analysis Service (PAS) or to receive additional market data. IPD PAS is an in-depth performance measurement and benchmarking tool used for analyzing investment strategies, assessing performance and risk profiles. The process is essentially the same: Your ARGUS model will improve incrementally each time you validate results with additional market data, and you will be able to perform these steps more seamlessly than ever before. This iterative process is now available directly from ARGUS DCF models to refine and improve the confidence in your results. The MDI functionality in ARGUS DCF will also be available in ARGUS Valuation – Capitalization (ValCap) and ARGUS Enterprise (AE) later in 2011. Improved Transparency Another facet of the ARGUS-IPD relationship is that mutual clients will be able to submit the data required by IPD for the analytics they perform for clients automatically through ARGUS solutions. We are working on similar functionality with RCA for data that will be submitted for the International Council of Shopping Center’s Global Shopping Center Directory. We are also in discussions with other service providers, data providers and industry associations to develop similar functionality. ARGUS believes that RICS members and the commercial real estate industry are looking for more integrated solutions that provide increased transparency and insight that will enable improved and more complete investment decisions and reporting. These solutions will require innovative technology to consolidate and report on the vast amounts of global market information, along with intelligence and analytics from your own models and assumptions. In the end, better and more accessible information will lead to informed analysis to improve returns, manage your risk, and improve profitability. -- Bruce A. Kellogg FRICS Bruce A. Kellogg FRICS MAI Senior Vice President, Industry Relations, ARGUS Software, Atlanta, Georgia Bruce A. Kellogg MAI FRICS is Senior Vice President, Industry Relations, ARGUS Software, Atlanta, Georgia. Mr. Kellogg is responsible for Industry Relations based on his 39 years of service within the appraisal profession and real estate industry. In addition to other responsibilities within ARGUS Software, he currently serves as a blogger in Global Viewpoints of ARGUS Software, reporting on his industry experiences as he travels and interacts throughout the real estate industry. Before joining ARGUS Software in January 2007, Mr. Kellogg served as Managing Director at Cushman & Wakefield’s Valuation Services since 1996, where he oversaw the group’s quality control procedures and was Editor-in-Chief of Real Estate Outlook, a semi-annual investor survey, from 1996 to 2003. Over his final four years of service at C&W, he represented Valuation Services as a national officer of the Appraisal Institute, serving as National President in 2005. Prior to his service at Cushman & Wakefield, he worked for CB Richard Ellis (Atlanta), Manufacturers Hanover Trust Co. (NYC), Bankers Trust Co. (NYC), Miller & Kafes Associates (Ft. Lee, NJ), and Seamen’s Bank for Savings (NYC). During Mr. Kellogg’s extensive career, assignments have included nearly every type of project, and not exclusively within the U.S. Mr. Kellogg has also coordinated portfolio appraisals performed for major investors and lenders. He has traveled extensively and interacted with many U.S. and international corporate clients, associations and governing bodies. Mr. Kellogg serves on the Board of Directors of OSCRE International, the global real estate data standards body. In 1982, he was awarded the prestigious MAI designation by the Appraisal Institute. And in 2005, he was honored with the renowned and globally respected FRICS designation of the Royal Institution of Chartered Surveyors. Mr. Kellogg is currently the Co-Chair for the Southeast Region of RICS Americas.