Market economies operate in deference to Rational Choice – the unavoidable imperative of all organisms acting in their own self-interest at all times and at all levels. Rational Choice tells us that commercial real estate market risk is primarily derived from asset obsolescence that occurs as a result of advances in technology within the industry and the economy as a whole. These advances in technology create changes in the purchasing preferences of the consumers of the goods and services the commercial real estate property operating business seeks to serve. Technology risk is the risk that drives asset obsolescence risk and is the basis of the INVIZEN IT programmatic functions that include a proactive suite of risk reduction and risk mitigation services.
In the case of commercial real estate income-producing properties the market risk rises and falls with the changing consumer spending preferences until it reaches a level where it disrupts the local trade area of the property or disrupts the entire asset class.
This risk is unavoidable – it can only be managed for the purposes of generating a profit-taking opportunity or preventing a loss.
INVIZEN harnesses the power of market risk in an intuitive way to create potential outcomes that would be more attractive for investors, lenders, sponsors, developers, and the finance industry by constantly seeking the source of the market disruption events and providing advance notice so that new plans and decisions can be made closer to the real-time environment window that INVIZEN operates in.
RTS is the only end-to-end solution for investment loss mitigation that provides:
- Proactive CRE investment loss mitigation due to asset obsolescence; and
- Real-time CRE investment loss mitigation due to common forms of investment fraud; and
- Proactive CRE investment loss mitigation due to unforeseen liquidity crises that could give rise to a bankruptcy petition or foreclosure event; and
- Proactive CRE investment loss mitigation due to management execution risk; and
- Real-time CRE investment loss mitigation of market risk by providing up to 24 months advance notice of market events that could impair future asset value.
Find out more by talking to an INVIZEN representative today about what our unique end-to-end solution for commercial real estate market risk could mean for your investment in a CRE property or portfolio.
Contact INVIZEN at 832.663.9634.