CRE Investment Loss Prevention: Time for a Plan?

Yes, it is the end of the month and we are facing the reality of having to make the monthly report and put lipstick on the pig.  CRE investment losses are as real as death and taxes but an opportunity exists for a different outcome.

The opportunity comes in the form of market analysis and forecasting with a focus on market disruption events that play out in the form of changes in consumer purchasing preferences.  In the end, the consumer’s purchasing preference is the deciding factor on whether or not a given innovation or advancement offers a value proposition that is sustainable.  As the innovation or advancement gains market share it eliminates existing competitors’ market share in most cases.  This is a natural process that is the hallmark of a healthy market economy.

The basis of the INVIZEN IT Real-Time Status (RTS) Asset Care Protection Program and its component services programs is technology risk management in a real-time environment that is proactive in nature.  Technology risk is the one risk we all accept in a market economy – innovations and advancement in technology (in all their forms) are what conspire to create asset obsolescence in business income-producing assets.  As asset obsolescence becomes more pronounced, yield maintenance risk becomes more pronounced, as does total investment loss risk.technology-risk

Businesses live to find more efficient means and methods of satisfying a need and monetize the solution.  This important aspect of our economy forms the basis of the RTS program concept design.  Technology risk cannot be avoided, it can however be managed for profit.  INVIZEN focuses on economic forecasts predicated upon the detection of events or trends that may result in large-scale changes in consumer purchasing preferences within the local geographical market area of a given business.  The goal is to provide up to 24 months of advance notice of these events so that reasonable plans can be implemented to avoid a potential unforeseen liquidity crisis that would have the potential to end in a bankruptcy petition.  By realizing the pending impact of technology advances and innovations that are manifesting in a given property’s local market area, the impact on asset obsolescence may be delayed or even avoided.  This has the same level of impact on yield maintenance risk and total investment loss risk.

What are you focused on (besides keeping your job)?

There are no villains in this world and there are no victims, only volunteers.  What are you volunteering for today?


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