Building Value: Risk Management and Human Capital Solutions for Modern Real Estate
From development to property management, we understand the complex risks facing today's real estate operations. We’ve created a Financial Impact Report that focuses on aligning your business objectives with Risk Management and Human Capital solutions.
First, we ground our understanding of your business in the context of what is happening today in the wider industry…
Risk Management
The U.S. housing market is experiencing a significant slowdown, with home sales reaching their lowest levels since October 2023, primarily due to high mortgage rates and record-high home prices.
In August 2024, sales of previously-owned homes dropped 2.5% to an annual rate of 3.86 million, while the median home price rose 3.1% year-over-year to $416,700, the highest on record for August.
Source: MARKETWATCH
2024
2024
Risk Management
Rising insurance premiums are impacting property values, with multifamily properties experiencing a 3.6% decline in value from Q4 2019 through Q2 2024 due to increased insurance costs.
Insurance costs contributed to 17% of total expense growth during this period, with home insurance premiums rising by 23% over the previous year as of May 2024.
Source: WIKIPEDIA
2024
2024
Risk Management
The commercial real estate sector is facing challenges, with U.S. office vacancy rates projected to peak at 19.8% in 2024, up from 18.4% in Q3 2023, due to changing work patterns and economic conditions.
Office-leasing activity is expected to revive slightly in 2024 but remain significantly below pre-pandemic levels.
Source: CBRE
2024
2024
Risk Management
The luxury housing market remains robust, with properties priced over $1 million seeing increased sales, as wealthy buyers, often paying in cash, are unaffected by high mortgage rates.
This trend has led to a strong performance in the luxury sector, with builders like Toll Brothers Inc. benefiting from the demand for high-end homes.
Source: NEW YORK POST
2024
2024
Risk Management
The U.S. housing market is experiencing a significant slowdown, with home sales reaching their lowest levels since October 2023, primarily due to high mortgage rates and record-high home prices.
In August 2024, sales of previously-owned homes dropped 2.5% to an annual rate of 3.86 million, while the median home price rose 3.1% year-over-year to $416,700, the highest on record for August.
Source: MARKETWATCH
2024
2024
We search for both Visible and Hidden Risks in your operations.
Visible Risks
- Property Damage (Natural Disasters, Fire, Water Damage)
- General Liability
- Professional Liability
- Workers' Compensation
- Construction Defects
- Tenant Injuries
- Equipment Breakdown
- Vehicle Fleet
Next, we apply our EBITDA Edge framework to your business…
1
Discovery
- Comprehensive property portfolio analysis
- Building systems assessment
- Historical loss pattern review
- Tenant mix evaluation
- ESG compliance assessment
2
Risk Mitigation
- Property maintenance protocols
- Tenant screening procedures
- Emergency response planning
- Environmental compliance
- Building safety programs
3
Modeling & Analytics
- Property valuation modeling
- Occupancy optimization
- Operating expense analysis
- Revenue projection modeling
- Capital expenditure planning
4
Claims Process
- 24/7 incident reporting
- Digital documentation systems
- Emergency response protocols
- Business interruption minimization
- Tenant communication procedures
5
Risk Transfer
- Customized property coverage
- Environmental liability solutions
- Professional liability programs
- Alternative risk financing
- Builder's risk programs
We focus on the business drivers that impact your business…
-
Portfolio diversification
Geographic market expansion
Asset class optimization
Development opportunities
Value-add strategies
Joint venture partnerships
Technology integration
Sustainable building initiatives
-
Property maintenance efficiency
Tenant retention strategies
Energy management
Building automation systems
Emergency preparedness
Vendor relationship management
ESG compliance programs
Cyber security protocols
-
Capital structure optimization
Debt management strategies
Operating expense control
Revenue enhancement programs
Tax efficiency planning
Investment return optimization
Working capital management
Asset monetization strategies
Lastly, to execute on our goals, we’ve created a suite of world-class tools customized specifically for the real estate industry…
Risk Mapping Edge
Comprehensive analysis of real estate portfolios to identify and address unique risk exposures across your entire property holdings.
- Detailed mapping of property-specific risks and vulnerabilities
- Building systems and infrastructure assessment
- Tenant mix and lease structure evaluation
- Environmental and regulatory compliance mapping
- Property management risk assessment
Risk Insight Edge
Strategic analysis of real estate industry trends and emerging opportunities in property management and development.
- Smart building technology adoption strategies
- ESG compliance and sustainability initiatives
- Property value enhancement opportunities
- Alternative space utilization analysis
- Market demographic trend evaluation
Market Intelligence Edge
Deep understanding of real estate insurance markets and rate environments across different property types and coverage lines.
- Real-time property insurance market monitoring
- Liability coverage rate analysis by property type
- Natural catastrophe impact on market pricing
- Builder's risk market conditions tracking
- Environmental coverage market assessment
Pricing Edge
Strategic approach to optimizing real estate insurance costs through risk quality improvements and market positioning.
- Property risk improvement strategies
- Building safety program development
- Claims history analysis and mitigation
- Alternative risk financing evaluation
- Property valuation optimization