What Asset Managers Don’t Know Is Already Costing Them

Asset managers are financial experts. They run forecasts, analyze NOI, manage CapEx budgets, and answer to investors. But according to Bill Douglas, CEO of OpticWise, theres a growing problem hiding in plain sight: the data they use to make decisions is often incomplete, delayed, and filtered before it ever reaches them.

Asset managers are financial quants, Douglas says. They can run forecasts. They just dont know the levers driving the numbers, because those levers live in vendor platforms they cant reach or see into.

That gap is not a minor inconvenience. Its a structural problem that affects CapEx planning, insurance renewals, refinancing packages, and exit pricing.

The Report Youre Reading Is Already Interpreted

Most asset managers receive property reports generated by a property management system. Those systems track leasing activity and financials. What they do not track is how the lighting is being controlled, how the HVAC is performing, how elevators are running, or what is happening with access systems.

The result is that an asset manager reviewing a monthly report is not looking at raw data. They are looking at a summary that has already been shaped by whoever compiled it.

They give management the KPIs the home office wants to see, and thats it, Douglas says. Im not saying they manipulate the numbers. Im just saying theyre leaving out the rest. And the asset manager is getting what they asked for, but they dont know what to ask for.

Douglas references the classic book How to Lie with Statistics to make the point. Nobody is necessarily lying. But a number taken out of context becomes misleading. If utilities are down 2 percent and the goal was 5 percent, reporting only the 2 percent is technically accurate and practically useless.

The $2,400 Problem

Douglas shared a concrete example from a client conversation that became a podcast episode. An asset manager noticed that one budget line item jumped from $3,000 to $5,400 in a single month. Tracking down the $2,400 variance took four to five hours.

Imagine if you could just say, whats the variance? Why is this off? Douglas says. And then it comes back to you two minutes later and says, this is the transaction, or it was miscategorized, or whatever, but you can see what it was. And it was doing it while you were working on something else.

That capability exists when an asset manager has access to a unified data environment, what Douglas calls a property brain, that pulls together all of the operating technology data from across the building. Without it, the only option is to log into multiple vendor platforms, look at separate dashboards, make assumptions, and wait until next month to see if anything improved.

The Benchmarking Blind Spot

Beyond individual line items, the data problem compounds at the portfolio level. Most asset managers cannot explain why one comparable property costs more to operate than another, because they do not have the underlying data to make that comparison.

How do you know your utility spend is good? Douglas asks. Where do you stand, and more importantly, what should you do to improve that? Thats where a lot of benchmarking services fall short. They dont give you actionable plays. They just say youre high or youre low or youre at 54 percent. Whats your goal? They dont tell you how to do it.

Without root cause data, an asset manager cannot benchmark across the portfolio, cannot defend spending to an underwriter, and cannot make a credible CapEx argument to investors.

The One Question That Changes Everything

Douglas frames all of this as a single underlying issue. The through line is really one question: do you own your operating data, or do your vendors?

Asset managers are held accountable for NOI, CapEx returns, refinancing packages, and exit price. But all of the levers driving those outcomes sit inside vendor platforms that the asset manager cannot directly access. The vendor holds the data. The asset manager holds the accountability.

OpticWise works with owners and operators to consolidate operating technology data from across a property into a unified platform. The goal is not to add another dashboard. It is to give asset managers access to the raw data they already have a right to own. More on the approach is available at the Peak Property Performance site.

Were not selling you another piece of software, Douglas says. Were taking all the platforms you have and getting the data in a way that you could use it. Its your data. We just give you the platform to do it.

For asset managers being asked to optimize performance without access to the data that drives it, that distinction matters a great deal.

About OpticWise: OpticWise is a digital infrastructure and data strategy firm focused on commercial real estate. The company helps owners and operators take control of their building data, reduce operating costs, and build the foundation for autonomous property management. Learn more at opticwise.com.

Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.

Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.

You May Also Be Interested In

• In HelloNation, Flooring Expert Rich Linnell Reviews Luxury Vinyl vs Laminate Flooring for Mercer County Homes
• End of Day Message
• MoneyBuddy, a Hong Kong Loan Matching Platform, Upgrades AI Loan Matching to Compare 30+ Hong Kong Lenders