How to get ahead in real estate investment – fast - #TechCBRE

How to get ahead in real estate investment – fast

Nick Wright, Digital Strategist, looks at the quick and simple route to building a high-performing property portfolio

The last time you searched for a new home, did you spot an advert in the newspaper? Ring up the estate agent, or even visit their branch on the high street?

Unlikely.

90% of UK consumers start their property search online these days. But what has become commonplace in the residential world still hasn’t taken hold in commercial property in quite the same way.

The problem

In a market that has been affected by unwavering uncertainty and disruption, vendors need to do all they can to be front of mind with investors, who themselves need to move fast when opportune investments go to market. 

In a competitive marketplace, investors are always looking for the edge that makes them the frontrunner for a deal

So, why aren’t all property transactions conducted online? Perhaps it’s a self-fulfilling prophecy; investors know properties aren’t listed so don’t look, and in turn there’s little incentive for agents to list deals on the internet. Perhaps it’s the need for discretion; institutional investors don’t want to air their sales prices in the public domain, preferring instead to go off market.

It could be that in these uncertain times, investors need a trusted advisor to guide the process - after all, these are complex transactions. Or maybe it’s just that in a competitive marketplace, investors are always looking for the edge that makes them the frontrunner for a deal, and going through an agent can give them that much-needed competitive advantage.

CBRE's solution: Deal Flow

In a digital world, there have to be advantages to moving the process of sourcing and securing purchases online. Anything that gives quicker, easier access to scarce and sought-after development and investment opportunities must be a good thing.

So, what’s the deal online? There are three good reasons why the internet should be investors’ first port of call for sourcing the hottest opportunities on the market:

  1. Choice: The ability to browse all opportunities, based on the acquisition criteria you set, rather than simply the few you are presented with, means a wider choice than ever before. Detailed search criteria, alerts and mailing lists propel investors to the front of the queue when new opportunities come to the market.
  2. Time saving: Searching for and finding sites and properties can be an extremely time-consuming task. Having easy access to a large property data base and virtual deal room for tracking and managing bids and submissions in real-time can help fund managers capitalise on the best opportunities and maximise returns.
  3. Audience: Vendors increasingly gather their full international inventory in one place, which with their growing database of qualified buyers, makes for a powerful combination. As vendors present their sales to a wider audience than ever, they have a truly global purchasing pool within their reach.

How CBRE can help:

The internet’s potential is undisputed, but how can the commercial property community break free from the ties of ‘the way we’ve always done it’, and change the transactional playing field?

CBRE designed Deal Flow to do just that. The easy-to-use portal does exactly what it says on the label, giving purchasers visibility of CBRE’s exclusive sales mandates and allowing deals to flow quickly and smoothly.

CBRE Deal Flow is a web-based investment sales listing platform for everything from single assets, land parcels, development sites, up to whole property portfolios. The website streamlines the entire disposal process, through a secure virtual deal room.

The beauty from an investor’s perspective is that every available sale around the world can be viewed on Deal Flow, which gives them more choice than ever before. With instant access to secure data rooms, investors can view detailed information on the property in their sights, fast.

Once a potential investment has been selected and executed, an electronic NDA (non-disclosure agreement) or CA (confidentially agreement), investors can progress the transaction through the portal’s secure virtual deal room.

Regular CBRE Deal Flow users will have access to bespoke email and online alerts so they never miss out on the next investment opportunity. On the flip side, vendors will have total visibility of activity and insights, with real-time reporting on the sale in question.

As every other aspect of modern life moves online, you can’t afford not to go digital. See our article on Blockchain to read more on digital disruption in commercial real estate.

Deal Flow: a snapshot

Since its 2015 launch:

  • 15,536 projects have been created on Deal Flow
  • 4,353 projects have sold via Deal Flow
  • 738,729 investors have registered on Deal Flow
  • 7,174 CBRE brokers around the world access Deal Flow daily

Find out more - contact us

Need help understanding the opportunities Deal Flow presents to your business? Or would you like to dive deeper into the details of the product? Our Capital Markets experts have years of experience helping companies with their acquisitions and disposals.

To find out more, get in touch with Nick Wright, Digital Strategist – nick.wright2@cbre.com or call +44 7880 054 252

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