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Future Real Estate Marketing -The Value of Operations & Maintenance Information to Buyers and Lessors

Image Credit: holo-blok

FutureCite Exclusive interview 7 of 8 with Roddy Handa of holo-blok.

FutureCite:

At our last chat we talked about how the use of digital (DPD) tools and DPD skills by the design and construction communities can lead to sustainable building ecosystems, and as well yield benefits in the lifecycle and value of projects. These benefits are also of value to owners, developers and real estate agents.

What types of DPD skills and digital tools will real estate organizations and developers need to use to market and sell the buildings and properties?

Roddy Handa:

So, I think on the owner, realtor and real estate side of things they really need to understand what kind of information they can market with their assets. Operations and maintenance are a cost that far outweighs the initial construction and design of a project, but it’s often the one that’s most overlooked and most underappreciated. If these stakeholders understand the capability of this information, it becomes highly marketable and highly sought after information which logically would give all the building history to a prospective purchaser.

FutureCite:

Surprising how many people do not realize how the costs of operations and maintenance can impact their investments! So Roddy, what are the first things or steps that the owners, realtors and managers of real estate need to know and action?

Roddy Handa:

By having a wealth of information that comes in the form of a building information model, or associated asset information models, you’re able to market buildings better to prospective buyers or lessors, because you can provide them with all the information they could ever need for that asset. This includes the complete historicity of an asset which is extremely valuable to prospective stakeholders.

FutureCite:

Can you give us an example of a real estate situation that would be of interest to a prospective buyer or lessor?

Roddy Handa:

So, one example would be if you’re leasing out a tenant space to a restaurant. With a complete asset information in a BIM format, you’re able to tell them everything in that space that’s concealed and information about everything not concealed. You’re able to tell them with certainty what the services are. You’re able to tell them what kind of light bulb they need when their light bulbs go out. And that information is quite valuable to, I think, a lot of prospective lessors and buyers, because there’s a lot of hidden costs that come with a building, that people don’t appreciate until they can see the overall maintenance history.

FutureCite:

No one likes to have hidden costs surprise them – so how can they improve the current practices through use of digital tools?

Roddy Handa:

So, to start – mandating a record keeping program that coincides with the documentation would be a highly marketable asset when you’re selling or leasing an asset to another person. This is because now you’re able to give them a lot more certainty regarding what they’re getting into, a lot more certainty into the geometric information, but also the asset information of all the equipment serving that space and how well it’s been looked after.

FutureCite:

Can we say that this record keeping program will give people better information as part of due diligence – whether it be for home or office or any other asset that they plan to buy or lease?

Roddy Handa:

Absolutely.  When people have that information at their fingertips, I think due diligence becomes a lot easier, and they know exactly what they’re getting, so the risk of purchasing or leasing an asset becomes a lot smaller for both the person acquiring the asset and the person who’s selling or leasing the asset. All that certainty tends to benefit everyone. I think you’re just going to get better satisfaction all around when you’ve got that kind of information handy.

FutureCite:

So in the future when more and more transactions are done online, these digital tools and skills will enable both buyers and sellers to add value to how they market and maintain their building and property assets.  I think that we have just touched on new occupation and employment opportunities in this sector, and look forward to covering this in our next chat!

About Roddy Handa
Roddy Handa is a lawyer, architect, problem solver, and a partner at Holo-Blok Architecture, an Edmonton based architecture and construction technology service company.  Roddy is the Vice Chair of aceBIM and serves on many civic committees that deal with the construction industry.

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