October 3, 2021
Data drives markets, public and private. That is a fact, imperfect information drives a discount or premium depending on your seat. If the data is bad enough participants exit a trade or even a market. You manage risk when you have data, imperfect data is tough, bad data is destructive, and sometimes there is no data. In markets where there is infrequent trading it does not mean there has to be imperfect data. Inveniam credentials data so that it can be relied upon.
The best example of this is Amazon borrowed at 80 bps over treasuries on a 30 year bond in May of this year. This was oversubscribed 3x. A triple net lease with Amazon‘s credit behind the light industrial warehouse trades at greater than a 20% discount and you get the building (on the same cash flow stream). This is the same credit and same cash flow in one market with broken data and one with active trading and price discovery.
Players like Apex, Cushman & Wakefield, and Inveniam are going to change this. Monthly or quarterly price discovery by third parties on credentialed data will transform #CRE.