New Methods in Operational Benchmarking Melanie Morrison, CPM

#MAMConf14
New Methods in
Operational
Benchmarking
Panelists:
Melanie Morrison, CPM
Mark D. Mahoney
Dom Beveridge, MBA
Moderator:
John Njoku
The Panelists
Mark Mahoney
Vice President – Asset Management
Dom Beveridge, MBA
General Manager
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Melanie Morrison, CPM
Co-Owner & Designated Broker
John Njoku
CEO & Founder
Intro & Agenda
1) Internal Benchmarking Best Practices
• Dominium
• MEB
2) External Benchmarking Innovations – New
Metrics
• Multifamily Data Exchange – RPU
• Kwelia – Kwelia Health Scores
3) Data Transparency
4) Evolution of New Asset Classes
5) Wrap Up/Final Thoughts
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Internal Benchmarking
Rankings &
Points
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Monthly Performance Meeting
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Peer Comparison
Internal Benchmarking
The Value
Creation
Dashboard
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Internal Benchmarking
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Internal Benchmarking
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Internal Benchmarking
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External Benchmarking
Quick Poll
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External Benchmarking
Technology &
New Metrics
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External Benchmarking
Multifamily
Data
Exchange
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The multifamily industry approach to
performance benchmarking is like
playing a game without keeping score
Some Rules For Keeping Score
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• It must measure how well we did relative to comps
• The score must be factual – i.e. not estimated
• There can only be one score for all competitors
How Multifamily Does It Today
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Requirement
Multifamily Approach
• Historical
• Asking-rent based
• Factual
• Estimated, survey-based
• Definitive
• No point of truth on
performance
Hotel Industry Shows The Way
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• Benchmarks based on actual performance
• Metrics based on actual revenue – no surveys
• Single, simple set of metrics for all participants
There is no good reason why the same clarity should
not be available in the multifamily industry
External Benchmarking
The Kwelia
Health Score
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External Benchmarking
Kwelia Health Score
A 0-100 Metric that shows an
apples-to-apples measure of
performance against comps.
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1
We use data science to
derive a “market” price
for every unit type.
• Location
• Configuration
• Amenities
2
With property occupancy
and actual rents, we
compute a health score
for each property.
Privacy & Sharing
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Data Transparency
A Changing Market
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The Evolution of
New Asset Classes
Conclusion
Final Thoughts?
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Contact Us!
Mark Mahoney
VP – Asset Management
Dominium Development & Acquisitions
[email protected]
(763) 354-5608 Office
Melanie Morrison, CPM
Principal
MEB Management Services
[email protected]
(520) 618-3811 Office
John Njoku
CEO & Founder
Kwelia
[email protected]
(512) 222-9532
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Dom Beveridge
EVP & General Manager
Multifamily Data Exchange (MDX)
[email protected]
(415) 713-0489