Key Takeaways
- CRE management software can dramatically reduce operational costs by automating time-consuming tasks like quarterly reporting and investor communications.
- The biggest ROI gains come from operational efficiency, improved investor transparency, and better compliance and audit trails.
- Successful software implementation requires clear ROI goals, proper team training, and avoiding common pitfalls like over-customization.
Time-consuming, repetitive tasks can cost CRE companies millions of dollars per year. What if you had CRE management software that automated these tasks, reducing their cost to near-zero and giving you more time to close deals, serve investors, and grow your business?
That’s what CRE management software is for.
What is CRE management software?
CRE management software is a digital platform for tracking real estate investments, reporting on their performance, managing online documents, and communicating with limited partners (LPs). Think of it as a central dashboard for running a real estate fund or portfolio.
However, unlike legacy tools like spreadsheets and email, commercial real estate management software is built specifically with the CRE industry in mind, automating common tasks like waterfall calculations and quarterly reports.
Why ROI matters in CRE investment management
As an investor, paying attention to the ROI of different parts of your business is essential. For example, if a tool can help you complete a task in a fraction of the time it takes you to do the same task manually, there’s an opportunity for a higher return on your time.
Furthermore, if a software can help you minimize costly errors, make faster business decisions, or reduce your risk of loss, it could be well worth the investment.
Where CRE management software delivers the biggest ROI
When it comes to CRE management software, the biggest ROI comes from the following:
Operational efficiency and team scalability
Imagine scaling your portfolio without a proportional headcount increase. With CRE management software, you can. This is because of the operational efficiencies it affords: automated reports, document management, communications with investors, and more.
Better investor transparency and communication
Many CRE management platforms, including Agora, offer investor portals that LPs can access at any time to get real-time updates on their investment. This can save you countless hours of responding to individual emails while making your investments more transparent.
Improved governance, compliance, and audit readiness
By adopting CRE management software, you create a paper trail for every document, communication, and data point within your business. This keeps you audit-ready and makes it easier to stay compliant with financial reporting requirements.
How CRE management software saves time in practice
Here are some common ways CRE management software saves time in practice:
- Automated data aggregation across sources
- Faster quarterly and monthly reporting cycles
- Real-time portfolio visibility for stakeholders
- Centralized documentation and version control
Measuring ROI with the right CRE metrics
So how do you measure the ROI of CRE management software? Track the following:
| CRE metric | Key evaluation question |
| Reporting cycle and turnaround speed | How long does it take you to create and distribute investment reports? |
| Manual workload per team | How much manual workload does each of your team members take on? |
| Accuracy and data discrepancies | How accurate is your investment data? How many errors crop up? |
| Investor response and decision timelines | How long does it take you to hear back from investors and gain new subscriptions? |
If you perform better after implementing CRE management software, then ROI is likely positive.
ROI impact by role across the investment team
That said, the ROI impact of commercial real estate software can vary by investment team:
Asset management and portfolio oversight
High-level management teams benefit from faster oversight via real-time dashboards and alerts. They can rest easy knowing they’ll be notified if portfolio performance changes unexpectedly.
Finance and fund administration workflows
Those responsible for fundraising and distributing cash flows can streamline these tasks with purpose-built commercial real estate tools like Agora’s data rooms and payment automations.
Investor relations and communications efficiency
Investor relations teams can buy back time by automating investor reporting and using an investor CRM to keep track of every communication.
Acquisitions and pipeline execution
Acquisition teams can keep their deal pipeline flowing by streamlining onboarding workflows and staying updated on prospects.
Common challenges that reduce ROI after implementation
Of course, no software is fail-proof. Here are some implementation challenges you might face:
- Poor adoption and workflow resistance: When teams continue using familiar legacy tools like spreadsheets alongside the new system, you could end up paying for software that delivers only a fraction of its potential value.
- Over-customization slowing scalability: Heavily customized software configurations that require vendor support for every change can create bottlenecks that slow you down.
- Legacy data cleanup and migration friction: Migrating data from legacy systems with different file formats can be tedious, especially if it contains errors.
- Lack of ongoing KPI tracking: If you’re not careful, switching to a new software can interrupt your KPI tracking, resulting in inaccurate performance measures.
Getting started with CRE management software
To get started with CRE management software the right way, follow these steps:
| Implementation step | Recommended action |
| Define your ROI goals and success criteria | Before you evaluate a new software, determine what you’re looking for and what type of ROI you’re seeking from it. |
| Plan implementation and rollout timelines | Give yourself enough time to transition to a new software, so you can learn how to use it. |
| Prepare for system integration and migrate data | Audit your current system to identify what data needs to be transferred and arrange any necessary API integrations. |
| Train teams for long-term adoption | Invest in role-specific software training that goes beyond initial onboarding. |
Best practices to maximize ROI over time
To maximize your software’s ROI over time, follow these best practices:
- Standardize reporting and data inputs: Establish firm-wide standards for data reporting and naming conventions so everyone stays on the same page.
- Align outputs with investor expectations: Survey LPs to understand their communication preferences. Then configure your reporting system accordingly.
- Review workflows quarterly for optimization: Regularly audit your software workflows to identify areas for improvement.
- Track ROI metrics continuously post-launch: Monitor your reporting cycle time, investor inquiry volume, and other metrics to see how your processes improve over time.
How Agora supports measurable ROI for CRE investment teams
If you’re looking for next-level software for your real estate investment firm, consider Agora.
Agora can help streamline everything from fundraising and onboarding to investor relations to investment management. For example, you can use it to launch email marketing campaigns, automate digital subscriptions, run waterfall calculations, distribute earnings, and much more.
Depending on how much time and money you’re currently spending in these areas, Agora could generate a significant ROI for your business.
Conclusion
Ultimately, choosing the right real estate investment management software can be the difference between scaling your business to new heights or letting it fail. The best GPs and fund managers leverage tools like Agora to optimize workflows and stay ahead of the competition.
