Vacancy: A Direct Threat to NOI
For an Asset Manager, optimizing Net Operating Income (NOI) is the primary objective. Vacancy is a direct and immediate drag on NOI, but too often, it is managed reactively, only tracked after a unit becomes empty. This leaves little time to mitigate revenue impact. Asset managers need to anticipate and track future lease events to enable proactive intervention.
A Structured Approach to Vacancy Management
STREETS provides the tools to move from simple occupancy reporting to a detailed, proactive vacancy strategy.
- Unit-Level Taxonomy: Classify vacancy at the unit level using a detailed taxonomy and defined reasons. Understanding why a space is vacant is the first step to refining your rental strategies.
- Pipeline and Time-to-Let Metrics: Track the lease-up pipeline and measure the time-to-let metrics to help you set targets.
- Proactive Visibility: Gain visibility into upcoming vacancies to enable proactive asset management. Use alerts to prioritize actions that drive NOI.
Linking Vacancy to Financial Outcomes
The goal is to prioritize actions that lift NOI. STREETS links these operational metrics directly to financial outcomes:
- Cash Flow View: The cash flow view is linked directly to lease and OpEx events, allowing you to anticipate financial impact and optimize cash flow management.
- CapEx and OpEx Tracking: Track CapEx and OpEx against budget, providing context for the cost of maintaining and letting vacant properties.
- Tenant and Unit Views: Detailed tenant and unit views help you track churn, arrears, and rental loss risk.
By integrating operational data (vacancy) with financial data (cash flow, budgets), STREETS ensures asset managers can focus on the actions that protect value and optimize portfolio performance.