Greystar Outperforms the Market by 4.8% with Revenue Management
How do you know revenue management is making a difference for you? When you deploy any new business solution, it’s important to determine what your expected return on investment will be, and later evaluate performance relative to your expectations.
YieldStar clients benchmark their revenue performance to market each quarter, leveraging various third party data providers. Our partners continue to validate that the system delivers a three to seven percent revenue premium over market, regardless of asset class, geography, or market condition.
Greystar, one of the largest and fastest-growing companies in the multifamily industry, recently taking the number one spot in the 2011 NMHC list of the 50 Largest U.S. Apartment Managers, has partnered with YieldStar exclusively since 2007 and is using or implementing our revenue management solution across 70,000 units. They deal with diverse owner strategies, market dynamics, and asset conditions across their YieldStar portfolio.
Greystar completed a same store, same market comparison of 25,000 units using YieldStar revenue management relative to 25,000 units using traditional pricing practices within their portfolio. They compared both to what Axiometrics reported for rent and occupancy performance in the submarkets where those properties are located.
Properties using YieldStar outperformed the market by 4.8 percent per Axiometrics and outperformed Greystar’s non revenue management properties by 2.7 percent.
On a typical 250 unit asset with 95 percent occupancy and $1,000 rents, a three percent improvement in revenue translates into roughly $1 million in value given today’s cap rates.
Are you interested in a $1 million improvement to the value of your asset? How is revenue management improving the value of your portfolio?