Real estate asset managers, owners and developers are transforming the way they manage their back offices, increasingly outsourcing their accounting and administration functions to third-party specialists.
To explore why, we turned to 16 top experts in real estate administration, for their insights on using third parties for property, fund and project accounting and administration.
- Outsourcing enables organizations to focus on their core competencies—delivering value for property owners, investors and occupiers.
- Real estate investment managers need technology and resources to deliver more granular and detailed information about their real estate portfolios than most in-house back offices can typically provide.
- In addition to helping reduce costs, outsourcing enables owners to improve data access and analysis, tap new accounting talent and know-how and enhance risk management.
- Outsourcing often coincides with forming a new fund or business, expanding into new geographies or seeking an alternative to investing in new data platforms.
- For ongoing operations and businesses, a lift-out—the transferring of a whole group from an owner to a third party—is attractive because it preserves teams, workflows and institutional memory.