Although Brookfield is an undeniable CRE leader, with 600 million square feet managed across five continents, they are still constantly looking for ways to improve returns for their stakeholders.
Historically, contractors have maintained ownership over project data, even whilst the owners are the biggest stakeholders, holding the highest risk of return on an investment. Brookfield knew they needed a way to reclaim their data.
Brookfield’s past process of managing data in spreadsheets and binders was no longer scalable to fit their business needs. Dan Kindbergh, the EVP of US Operations, identified a need to, “eliminate the administrative burden and lack of transparency inherent to the traditional bidding and cost tracking process and drive new value with a collaborative, scalable process.”
Ric Clark, Senior Managing Partner and Chairman at Brookfield, recognized that their current process for managing projects, coupled with the contractors monopoly on data, "prevented us from using that information meaningfully to help us make informed decisions.”
After testing Honest Buildings with a few properties on the East Coast, Brookfield rolled it out to all of their properties across 29 million square feet in New York, Boston, and DC.
Kindbergh has found that the creation of a “digitized, automated bidding and capital project management” system, has helped enable their property management team to become more efficient and spend less time stuck in the outdated previous processes.
The key to success was that Honest Buildings was the only platform that put project data back into the hands of the owners, instead of contractors and third party vendors.
What sealed the deal for Brookfield's leadership was that with Honest Buildings, the balance of power shifted from the contractor to the owner. When that benefit came to fruition, “it was a no brainer for me.”
- ric clark, senior managing partner, chairman
For nearly two years, Brookfield has used Honest Buildings to define the specs, bid out, and monitor project progress across all properties in New York, Boston, and DC. There are 10 trillion dollars invested in global construction and capital projects annually. Clark is confident that the ability to efficiently and accurately allocate that capital “is going to have a very major impact.”
“The return on investment math is simple, as even a tiny fraction of savings on one bid would pay for the platform. Multiply that by a few hundred projects per year portfolio wide, and it’s clear that the decision to bring on this platform was an easy one.”
- DAN KINDBERGH, EVP US OPERATIONS
Brookfield is one of the largest real estate investors in the world, with a portfolio of $152B of iconic properties. The company manages 600 million square feet of assets out of their 22 global offices.
Ric Clark is the Senior Managing Partner and Chairman of Brookfield Property Group and Brookfield Property Partners. He has been with Brookfield since 1984.
Dan Kindbergh is the Executive Vice President of Operations for Brookfield and has been with the company since 1988.