1. Reduce and control fixed costs:
Real Estate investors and developers remember the Great Recession and recall the pain of layoffs.
Fixed costs are defined as costs that are constant and not dependent on the amount of goods produced. Examples of fixed costs include employees, office space, and subscriptions to professional organizations. A large amount of fixed costs can create problems for businesses in an economic contraction. As revenue declines in a business, the cost of people can become too heavy for small businesses.
Real estate professionals are already comfortable outsourcing their IT and accounting support. Why not further reduce the business’s fixed costs by outsourcing commercial real estate analyst support?
2. Reduce employee specific risk:
A full-time, in-house analysts comes with baggage.
In addition to salary, an employer typically must pay benefits. Typical benefits include health insurance, life insurance, 401k, paid time off, and performance bonuses.
Employment taxes and benefits typically adds 30% on to the cost of a W2 employee.
When a business outsources a commercial real estate analyst, the analyst becomes one line item on their income statement. Additionally, a contract analyst’s costs can be easily tied to projects.
3. Improve leadership focus:
Leadership’s highest “return on time” typically does not involve managing teams of analysts.
By outsourcing analyst support to an experienced third party, leadership can focus on revenue generation rather than managing employees.
4. Gain access to world-class capabilities:
Small businesses typically can’t afford a Harvard MBA commercial real estate analyst on their team.
However, small business can still access institutional quality analyst expertise. For lower cost than a full-time junior analyst, a business can contract an MBA educated analyst with far more expertise.
At Bullpen, our analysts have access to each other and regularly meet. Why hire one analyst when you can leverage the experience and expertise of a team?
5. Free internal resources for other purposes:
Shift the responsibility of creating offering materials and cash flow models from you to an analyst!
Free internal staff to pursue more profitable activities, like raising equity and pursuing off-market deals.
6. Streamline and increase efficiency on time-consuming functions:
Most analyst work is time consuming and tedious.
Preserve your other team members for more company specific purposes.