Valbridge Property Advisors, North America’s largest independent commercial appraisal firm, is making strategic moves to enhance its operations amidst a shifting commercial real estate landscape marked by cautious investment and looming debt obligations. With nearly $1 trillion of commercial debt maturing by the close of 2024, the role of commercial appraisers has become crucial for providing accuracy and certainty in valuations. The tightening of lending standards emphasises the need for precise property assessments.
Aligning with its growth strategy, Valbridge is developing a next-generation appraisal software platform aimed at centralizing operations and enhancing client service. This proprietary system is designed to integrate and streamline data-driven workflows, centralizing property and expense information and equipping teams with advanced analytical tools.
As the company enters its second decade, Valbridge's CEO, Jody Bishop, emphasized the intentionality behind this technological development, recognising the demand for a modern platform that serves both the firm and its clientele. The envisioned software is intended to strengthen the firm's appraisal and specialty services, adding greater depth to the existing Valbridge Brain Trust.
Historically, the appraisal industry has struggled with fears of being overshadowed by automated valuation models, which employ algorithms to rapidly process vast data sets to determine property values. Tony Lesicka, Valbridge’s Vice President of Technology, acknowledged these concerns, noting that while certain cases see such technology replacing appraisers, automated models have their shortcomings. He cited the 2021 cancellation of Zillow's iBuying programme as an example, highlighting the difficulties in accurately predicting home prices using automation alone.
Valbridge is choosing to integrate technological advancements, such as data automation and artificial intelligence, with traditional appraisal skills. Bishop affirmed the enduring importance of human expertise in appraisals, particularly given the need for nuanced, local market understanding. He highlighted Valbridge's coverage across the United States, boasting offices in 70 locations and a comprehensive portfolio appraisal capability nationwide.
The company is not only updating its technology but is also making strides in attracting new talent to the appraisal profession, which is experiencing an ageing workforce. The Appraisal Institute estimates that 80% of professionals in the field are over 50 years of age. Valbridge is taking active measures to counteract this trend by engaging with universities and initiating programmes to highlight the profession's opportunities. These include a six-week internship known as Valbridge Scholars and speaking engagements at academic institutions.
Within its workforce, Valbridge fosters affinity groups like the Valbridge Women’s Council and the Future Leaders Alliance, focusing on soft skills such as negotiation and time management. Business Development and Technology Manager Laura Hulberg underscores Valbridge’s proactive approach in nurturing its professionals, essential in providing exemplary appraisal services.
Looking forward, Bishop is optimistic about surpassing growth expectations thanks to the investments in internal systems and the skilled team and remains focused on recruiting young talent as the industry continues to evolve. He acknowledged that the ever-changing nature of real estate requires appraisers to remain vigilant and consistently engage with the market dynamics.
Valbridge Property Advisors, committed to excellence, is thus positioning itself to meet future challenges and opportunities in the commercial real estate sector.
Source: Noah Wire Services