What Collaboration on Data Rooms Means for Real EstateAuthor: Milla Basma
It’s no secret that the real estate market (including commercial, residential and industrial real estate) is one of the biggest industries in the world. In spite of fears of a repeat of the 2007 global financial crisis, the industry continues to grow will probably continue to do so almost indefinitely. Such is the nature of a world where space is limited. As such, real estate agencies will continue to grow and spread, and will need to find a way to manage their seemingly endless workload. This is where the virtual data room (VDR) enters. They are secure online repositories of data that are designed for corporate use, and offer industry leading functionality. Here are some reasons why collaboration on VDRs will benefit the real estate industry, and how they will assist in the further growth of the industry.
Secure file sharing with partners:
Virtual data rooms are built to ensure the security of corporate data. Real estate agencies (or any company in any sector for that matter) need to maintain the integrity of their data if they value any kind of successful operation. Previously companies would have had to rely on services such as email or Dropbox, or even had to use physical data rooms if they wanted security. Those methods were either unsafe, or were very inefficient, as with the case of physical data rooms. VDRs, however, offer both physical and digital security protocols that will ensure the security of your data, and allow you 24/7, uninterrupted access to it. This is necessary if you need to share confidential documents with your partners or with potential clients.
Easy to use:
Your data room offers you a number of different features that all aim to make the virtual space as simple and easy to use as possible. For example, when you upload documents to the data room, they will be automatically numbered and indexed, making them as easy to find as possible. These features allow the users of your VDR to find the data that they need as quickly as possible, and therefore make decisions as quickly as possible as well. This means that you can complete more deals in a shorter time period, which will lead to greater profits for your business.
Asset and portfolio management:
Your virtual data room will allow you to exchange information with your asset and property managers in real time. They will be able to review the information that you send and keep track of all the necessary financial information and other similar aspects. This will make the process of preparing your financial statements a much shorter and easier one, as you can keep them up to date throughout the year. The same applies to portfolio management. You will be able to share confidential documents with your partners in order to make informed strategic decisions. Coupled with the ease-of-use functionality tools, this will allow you to make better and quicker decisions, leading to an increased transaction rate and, hopefully, more successful transactions.
In an industry where capital is almost everything, it’s important to maintain healthy relationships with the people who provide that capital: your investors. Inviting them to your data room will ensure that there is complete transparency, and will therefore provide some peace of mind to them. That’s pretty much all there is to investor relations: they just want to be able to see how their investments are doing so they know that they won’t fail them. That is, of course, provided that the financial performance that you show them actually has a positive outlook.
The last of the collaboration processes that we believe the use of a VDR will benefit is that of board communications. Your data room will allow you transparency with your board members, and as such will allow them to be as informed as possible when coming in to important board meetings. This will allow them to make well informed decisions about the management of the company, and it will allow them to communicate more directly with each other before they make their decisions. This will hopefully lead to a more successfully run company in the long run. On top of that, the more professional the way you present your information to the board the more likely it is that they will be happy with your performance.