For over a quarter century, the multifamily sector has tried to create a standard for multifamily operating data. Notably, MISMO (Mortgage Industry Standards Maintenance Organization) was created in the early 2000s with the backing of both Fannie Mae and Freddie Mac — but despite the heft the agencies carry, MISMO met with limited success. In recent years, more than half a dozen firms have launched to disrupt this huge market by inserting themselves in the middle of these transactions. The industry was in need of a standard, and these firms were hoping to achieve this goal by providing workflow management tools and Box.com-like electronic document repositories.

Last year, New York City-based redIQ launched a platform that has quickly gained widespread adoption. With its growing user base, the platform is developing into something the industry has sought for decades: a single standard for the exchange and analysis of multifamily data. According to Real Capital Analytics’ database, multifamily transaction volume throughout the United States totaled $14.8 billion in September 2016. Approximately 55 percent off all properties sold were evaluated using redIQ, while buyers who evaluated the deals using redIQ won approximately nine percent of all the properties sold.

According to Elliot Vermes, CEO of redIQ, during the final six months of 2016, the company added 40 new clients spanning all parties involved in multifamily transactions — brokers, buyers, loan originators and servicers, and appraisers. “As a growing number of leading multifamily professionals understand the significant benefit of being able to transform all of the data that they typically receive in disparate PDFs and Excel files into actionable intelligence, we continue to quickly expand our client base,” said Vermes. “We’ve established a large following among the industry’s leading brokerages and investors, and redIQ’s users now include eight of the country’s 50 largest multifamily owners. As a result, we saw revenue quadruple in fourth-quarter 2016 when compared to the prior year.”

In the second half of the year, redIQ expanded into two new client segments. Of note, the company added appraisal teams in seven markets across the country, and made a big splash in the lending community by signing on Berkeley Point Capital, providing the industry giant with a solution to help it improve its multifamily data flow.

“From acquisitions and investment sales teams to lenders and appraisers, professionals across the industry strive to do more deals, and in redIQ, they’ve found a technology solution that helps them reach that goal,” said Vermes. “Over the last few months, we’ve also rolled out a ‘lite version’ of our rent roll capture function, which allows anyone across the industry to test drive this capability entirely free of charge.”

redIQ provides a sophisticated suite of services that include data parsing and processing tools that enable clients to extract and transform vast troves of rent rolls and operating data into a standardized format in seconds, and an analytics suite that enables multifamily professionals to identify trends and anomalies using charts and analytical tools. In the coming months, redIQ is preparing to roll out significant platform upgrades in an effort to create that long-sought-after hub for standardized multifamily operating data.

Travis Barrington

Travis BarringtonTravis Barrington is the Founder of cre.tech, a media and events startup focused on commercial real estate technology. He is also the Founder of High Rise Facilities, a resource for owners and managers of tall buildings. Travis lives in Southern California.