ATLANTA, Sept. 10, 2012 -- Companies lack confidence in the accuracy of their own, internal real estate information as scrutiny of data intensifies, and say that improving processes and technology are a top priority, according to a study released by Virtual Premise, a leading provider of cloud-based real estate information management solutions, and the National Retail Tenants Association (NRTA).
Virtual Premise's second annual Trends in Real Estate Management Survey asks questions designed to uncover business trends related to the collection, storage, use and distribution of key information about a company's real estate portfolio assets, including lease and maintenance information, space and utilization information and other critical portfolio data. Analysis of survey responses from corporate and retail commercial real estate professionals uncovered these key findings:
Companies lack confidence in the accuracy of their own, internal real estate information as scrutiny of data intensifies. Less than 50% of respondents are extremely or very confident in the accuracy, consistency and completeness of their data; a statistic that held steady from last year, indicating no progress has been made.
Improvements to business processes and internal structure are seen as imperatives to gaining control of real estate information. More than half of respondents — 54% — said that the need to modify internal business processes is a top priority for the next 12-18 months, up from 47% in the previous survey.
Implementing advanced real estate information technologies will drive ongoing data integrity and increase transparency to lease information. Thirty-nine percent of respondents listed implementing technology as one of their top two priorities, a decrease from last year's 50%, likely due to short-term budget constraints.
Companies feel increased pressure regarding the potential impact of the upcoming FASB lease accounting changes. Two-year statistics remained steady, with two-thirds of this year's respondents saying they are not prepared for FASB changes or are unsure of their level of preparedness.
"We are seeing growing anxiety in the marketplace from corporate and retail real estate departments, which are struggling to gain control and confidence in their companies' real estate data," said Andy Thomas, President of Virtual Premise. "Our annual survey results give us valuable insight to industry priorities and help us identify ways in which we can continue to provide software and services that help customers achieve their goals. This is especially important in the current environment when real estate departments are still faced with thin budgets and decreasing human resources. The release at the beginning of this year of our FASB solution, which enables customers to capture and use all data needed to prepare for the anticipated lease accounting standards, is just one example of our positive reaction to an identified industry need."
Virtual Premise was acquired last year by CoStar Group (Nasdaq:CSGP), the leading provider of information, analytics and marketing services to the commercial real estate industry. CoStar and Virtual Premise are working together to develop enhanced service offerings that provide corporations and retailers with data, technology and analytic tools to better manage their real estate portfolios.
To download a free copy of the Virtual Premise whitepaper, "Results – Trends in Real Estate Information Management Survey," visit www.virtualpremise.com.
About Virtual Premise
Virtual Premise, Inc. is a leader in best-in-class solutions for corporate and retail real estate management. The company's software and services help customers deliver on their business strategies by better managing and improving their real estate portfolios. Virtual Premise solutions include strategy and analytics, portfolio management, lease management, lease administration, project management, transaction management, and lease abstracting and document management services. Virtual Premise differentiates itself by providing best-in-class software that provides superior visibility and control at a value that is unmatched in the industry. Virtual Premise is wholly owned by CoStar Group, Inc. (Nasdaq:CSGP). For more information, call 404-267-1781 or visit www.virtualpremise.com.
About CoStar Group, Inc.
CoStar Group (Nasdaq:CSGP) is commercial real estate's leading provider of information, analytics and marketing services. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Through LoopNet, the Company operates the most heavily trafficked commercial real estate marketplace online with more than 6.1 million registered members and 3.6 million unique monthly visitors. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe including the industry's largest professional research organization. For more information, visit www.costar.com.