Harnessing Data Flow for Superior Property Management

In the world of commercial real estate, the phrase "data is the new oil" gets thrown around a lot, but what does it really mean for property owners and managers? The reality is, if you don't own your data & digital infrastructure, your vendors do. This isn't just a catchy reframe; it's the core challenge that we, at OpticWise, are committed to solving. In our latest Peak Property Performance® podcast episode, we dive into the essence of "Connect," the second C of our PPP 5C™ framework. It's about more than just making sure your systems are physically linked; it's about ensuring that data flows in a way that supports smarter decisions, boosts efficiency, and ultimately enhances your property's performance.

Connecting Building Systems for Enhanced Insights

When we talk about "Connect," we're not referring to just plugging cables into ports. It's about making sure that your building systems are communicating in a way that allows for meaningful data exchange. As Drew Hall, our Co-Founder & Chief Architect, points out, "Unify your building systems so data can flow and insights can grow." This connection isn't always as straightforward as it seems. Many property managers believe their systems are integrated because they've been told so by their vendors. However, true integration means the data is not only flowing between systems but is also accessible and usable by you.

Let's take video surveillance systems as an example. In many cases, the data from these systems is stored in the cloud, controlled by the vendor, and not readily accessible for property owners. This can be a problem when you realize that the data from these cameras can provide valuable insights beyond security, such as occupancy trends and space utilization. "Are the common areas being used? Are the outside areas being used? Do I want to light up this outdoor area?" asks Drew Hall. The answers to these questions can significantly impact your property's operational strategy, but only if you have access to the data.

Bill Douglas, our CEO, emphasizes the importance of owning your data: "You paid for the smart lock, right? You paid for the building management system. How come you don't have a copy of the data?" If your systems aren't connected in a way that allows you to control and analyze the data, you're missing out on opportunities to improve tenant experience and operational efficiency.

Challenges and Solutions in Data Flow

Connecting your systems to flow data effectively can present several challenges. One of the most common issues is vendor cooperation. Some vendors are more than willing to provide the necessary access points or API integrations to allow for data flow. Others, however, may make it difficult by requiring complicated processes or providing data in unwieldy formats. "We've seen systems where the vendor says, 'Sure, just plug a wire into that port,' and others where you have to jump through hoops to get a flat ASCII file," explains Drew.

This variability can be frustrating, but it's an essential part of the decision-making process. Understanding which systems are easy to connect and which require more effort helps prioritize where to focus your resources. Bill advises, "Pick the first couple of plays that are going to work, engage the right team members." By starting with systems that offer high impact with low friction, you can build momentum and demonstrate value quickly.

The key is to be strategic about which systems to connect first. Consider the potential impact of having that data available. For instance, if connecting your building management system can significantly enhance energy efficiency, it might be worth the effort. "It's about finding the right balance between effort and reward and ensuring that every step you take is aligned with your overall property strategy," Bill adds.

Prioritizing System Upgrades for Maximum Impact

As we navigate the complexities of connecting building systems, it's crucial to remember that not every connection will be straightforward. Some systems may have hardware or software limitations that make integration challenging. However, that doesn't mean you should abandon the effort altogether. Instead, consider the long-term benefits of having a fully connected infrastructure.

Bill points out, "There are commercial decisions that drive which systems you spend time and energy on." For example, if you know a system's contract is up for renewal soon, it might make sense to wait for a more favorable time to negotiate better terms for data access. Alternatively, if a system is due for an upgrade, that could be the perfect opportunity to ensure it aligns with your data flow objectives.

Ultimately, the goal is to create a digital infrastructure that supports your property's Peak Property Performance®. By being methodical about which systems to connect and when, you can ensure that your property is not just operating efficiently today, but is also well-equipped to adapt to future needs and opportunities.

Vendor Cooperation and System Limitations

One of the significant hurdles in achieving seamless data flow is vendor cooperation. As Drew Hall highlights, "We've seen systems where the vendor is more than willing to provide access points, making the process straightforward. However, others may require cumbersome processes or deliver data in outdated formats." This inconsistency can be a major obstacle for property owners looking to harness their data effectively.

Bill Douglas adds, "The life cycle of a building is long, whereas individual systems and their vendors have shorter cycles. As systems are handed off from one vendor to another, their capability to bring data into the flow remains unchanged. It's crucial to document these systems thoroughly to understand their potential and limitations." This documentation helps in identifying whether the effort to connect a system is worthwhile or if it would be more strategic to wait for an upgrade.

Understanding the cooperation level of your vendors is essential. Some are eager to partner with you to enhance your data capabilities, while others might only be interested in collecting their dues. By evaluating this, you can prioritize which systems to integrate first based on the potential impact and ease of connection.

Prioritizing System Upgrades for Maximum Impact

When upgrading systems, it's important to prioritize based on impact and ease of integration. "We generally recommend starting with systems that offer the least resistance but provide medium to high impact," explains Drew. "This approach ensures early wins, motivating your team and proving the value of data integration." The Peak Property Performance® book offers a grading system to help property owners evaluate which systems to tackle first.

Bill emphasizes the importance of flexibility, "Sometimes, what seems like an easy integration might turn out to be more complex. It's crucial to be adaptable and shift focus when necessary." By identifying systems that can be connected with minimal friction, property owners can initiate data flow, leading to operational efficiencies and improved tenant experiences.

These early successes lay the groundwork for tackling more complex systems later. By building momentum, property managers can gradually enhance their property's data infrastructure, ultimately leading to a more intelligent and responsive building environment.

Transitioning to Collect: Building the Right Team

Moving from "Connect" to "Collect" is not just about data; it's about assembling the right team. As Bill mentions, "Collecting data effectively requires the right team members who understand your organization's goals and can work with your vendors to achieve them." This ensures a smoother transition and better utilization of the data collected.

Drew adds, "It's about more than just gathering data. It's about collecting the right team and coordinating efforts to make data integration a success." By focusing on both the data and the people who manage it, CRE owners can create a robust infrastructure that supports ongoing growth and development.

Ultimately, the goal is to ensure that data is not only collected but also used effectively to drive decision-making and improve property performance. By building a team that understands the importance of data, property owners can unlock new opportunities for innovation and efficiency.

Actionable Takeaways for CRE Owners

As you navigate the complexities of data and digital infrastructure, consider these actionable takeaways:

• Clarify Your Needs: Start by identifying your property's specific data needs and ensure that your systems are capable of meeting them.
• Prioritize Vendor Cooperation: Work with vendors who are willing to provide the necessary access and support to facilitate data flow.
• Document Thoroughly: Keep detailed records of your systems and their capabilities to better understand where upgrades and integrations are needed.
• Build the Right Team: Assemble a team that understands your goals and can work effectively with vendors to integrate systems and manage data.
• Stay Flexible: Be ready to shift focus as needed and prioritize systems based on impact and ease of integration.

By taking these steps, CRE owners can ensure they maintain control over their data and digital infrastructure, maximizing their property's performance and enhancing tenant satisfaction.

About OpticWise: OpticWise provides owner-controlled data & digital infrastructure for commercial real estate — from PPP Audits to portfolio-wide intelligence. See how we operate or read customer outcomes.