Financial modeling is at the heart of every real estate asset management decision, but are you getting the most out of your data?
This three-part series will explore how to optimize your real estate financial modeling and overcome several common challenges that slow down your operations.
This first post examines the inherent limitations of using Excel as a financial modeling tool. While Excel is the best tool for modeling, it’s not designed for managing complex real estate portfolios. To put it bluntly, it’s the world’s worst database. Excel’s reliance on manual input and isolated data often creates greater risk.
Three distinct – and all too common – risks to accurate CRE investment reporting and performance optimization
#1. Human error
#2. Version control issues
#3. Lack of accessibility across teams
For real estate owners, these challenges don’t just slow down processes – they introduce risk, create inefficiencies, and lead to inaccuracies in reporting.
These limitations create four roadblocks that threaten effective CRE portfolio management:
- Data availability: Models are often locked or stored in hard-to-find locations, limiting team collaboration.
- Timeliness and accuracy issues: Inconsistent updates and scattered data result in out-of-date or incorrect financial information.
- Manual efforts: Teams spend excessive time tying models to actuals and budgets, creating bottlenecks and reducing efficiency.
- Knowledge gaps: As complex models evolve, teams can lose track of key formulas, especially if a critical team member leaves.
Without strong CRE risk management solutions and practices in place, asset and portfolio managers, owners, and others may find themselves relying more on gut feelings rather than precise data-driven insights – and that’s a recipe for disaster.
So how do you overcome these challenges? In our next post, we’ll dive into how Pereview’s asset management platform delivers innovative solutions that streamline financial modeling, boost accuracy, and save valuable time.
Additional reading in this series
Part 2: How Pereview’s asset management platform solves common financial modeling challenges
Want to know more about how Pereview addresses financial modeling challenges? Schedule a quick 15-minute conversation.
