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Real Estate Performance

Measuring what matters — from human activity to system performance.

Performance Categories​

CategoryWhat It MeasuresKey Metrics
FinancialReturn on investmentROI, NOI, IRR, Cash Flow
OperationalEfficiency of managementOccupancy, Turnover, Maintenance Costs
TransactionalSales effectivenessVolume, Conversion, Commission
Protocol-EraSystem performanceSettlement latency, Oracle accuracy, Yield streaming

Remember: KPIs are an indicator of success. Traditional metrics measure human activity. Protocol-era metrics measure system performance.

Contents​

Common​

General KPIs for across the Real Estate industry

  1. Revenue Growth: Monitors the increase in income over time, essential for assessing business expansion and financial health.
  2. Expense Ratio: The percentage of income that goes towards operating expenses, important for managing costs and improving profitability.
  3. Market Value: Estimates the current market value of properties, helping to gauge investment performance and market conditions.
  4. Lease Expiration: Tracks the stability of rental income by monitoring upcoming lease expirations, crucial for maintaining occupancy rates.

Real Estate Agents​

KPIs for Real Estate Agents

  1. Sales Volume: Measures the total value of properties sold within a specific period. It is crucial for evaluating financial performance and sales processes.
  2. Appointment to Listing Conversion Rate: Indicates the percentage of appointments with potential sellers that turn into active listings. This helps in understanding the effectiveness of sales efforts.
  3. Average Commission per Sale: Calculates the average commission earned per transaction, helping to assess profitability and agent performance.
  4. Listings Closed: Reflects the total number of property closings over a given time period, providing insights into sales success and market conditions.

Investors​

KPIs for Real Estate Investors

  1. Return on Investment (ROI): Measures the profitability of an investment relative to its cost, providing a snapshot of financial performance.
  2. Net Operating Income (NOI): Represents the income generated from a property after deducting operating expenses, crucial for evaluating property profitability.
  3. Internal Rate of Return (IRR): Estimates the interest earned on each dollar invested over the holding period, helping to gauge long-term investment performance.
  4. Cash Flow: Indicates the money left over after all expenses are paid, essential for assessing the financial health of an investment.

Property Management​

KPIs for Property Management

  1. Occupancy Rate: The ratio of rented or used space to the total available space, critical for understanding property utilization and income generation.
  2. Tenant Turnover: Measures the rate at which tenants move in and out, impacting costs and revenue stability.
  3. Maintenance Costs: Tracks the expenses related to property upkeep, helping to manage operational efficiency and budget.
  4. Tenant Satisfaction: Assesses the satisfaction levels of tenants, which can influence retention rates and overall property appeal.

Property Development​

KPIs for Real Estate Developers

  1. Internal Rate of Return (IRR): Used to evaluate the attractiveness of a development project by calculating the rate of return that results in a net present value of zero.
  2. Construction Cost Per Square Foot: Tracks the cost of construction per square foot, aiding in budgeting and pricing decisions.
  3. Percentage Pre-sale Sold: Measures the percentage of units sold during the pre-sale phase, indicating market demand and project viability.
  4. Real Estate Demand Growth: Estimates market demand growth using indicators like mortgage applications and population trends, crucial for project planning.

Deep Dives​

Context​