Retail property management gets automated
Whirlwind changes in technology and consumer preferences have left retailers scrambling to keep pace with the need to report on finances, sales and customer service, says Yardi’s industry principal, Todd Heubsch.
Heubsch, who is based in the US, says retail sales there are expected to grow by 3.1 per cent in 2016, exceeding the 10-year average of 2.7 per cent.
“Nearly 3.8 million retail establishments in the United States account for 42 million jobs and US$2.6 trillion in total gross domestic product impact,” Heubsch explains.
He says retailers are now navigating a digital world of tech-savvy consumers and e-commerce that demands a seamless experience.
“Property managers are often overwhelmed with consumer and financial data streaming in from multiple sources and systems. Sales trends vary from report to report, lease spreads are hard to identify, and a simple number such as current occupancy might be elusive.”
In response, some retail business managers are seeking clarity by adopting what Heubsch calls a “single stack approach” to data gathering. This reduces the variety of data sources and automates nearly every business process.
For example, one major retail operator and investor embracing a single stack technology approach is CBL & Associates Properties.
One of the largest and most active owners and developers of malls and shopping centres in the United States, CBL currently owns, holds interests in or manages 147 properties, including 91 regional malls and open-air centres, in 30 states.
Mike Harrison is CBL’s senior vice president for strategic and technology initiatives. He says the company spent several months examining its approach to financial and operational management, concluding that it needed to take a new approach “that provides one source of the truth”.
“With all investment information generated from a single system we can now complete rollups, consolidations waterfall distributions and joint venture partnership allocation splits in minutes rather than days,” Harrison explains.
“Replacing our paper-intensive, manual approval and payment cycle with electronic processing and automated approval workflows saves a lot of paper,” Harrison adds.
Automating sales coverage and recoveries provided another business advantage, and Harrison says this will improve efficiencies as well as CBL’s “relationship with tenants by delivering timely, accurate billings”.
And CBL isn’t finished yet. Portal or café solutions that integrate with the company’s web presence and provide online experiences for consumers, retailers and vendors are part of CBL’s strategic roadmap.
“Of course, none of our high-paced transformation is possible without a great team of leaders working together to fulfill our strategic roadmap,” Harrison concludes.
For more information about Yardi, visit www.yardi.com/anz