DECIPHER™ Case Study 11:
Comprehensive Data, Advanced Analytics, Price Optimization Modeling, Predictive Analytics, and Business Intelligence Solutions
Collaborating closely with Web Neighbor, SVP of Strategic Initiatives, Competitive Analytics recently completed a myriad of BI projects that assisted Irvine Company with evolving their internal data (cleaning, wrangling, organizing), advanced analytics, and business intelligence solutions).
The Irvine Company® is a diversified, privately held real-estate investment company and master-planner — highly respected for stewardship and master-planning of The Irvine Ranch® in Orange County, California. With operations throughout coastal California, Irvine Company plans and brings to life balanced, sustainable communities with a full range of housing, job and retail centers, schools, recreation, and permanently preserved open spaces. Comprising master planners, community builders, real-estate investors and asset managers, Irvine Company is committed to long-term ownership and management of a high-quality portfolio — the breadth and quality of which is unmatched in the industry — with each individual property positioned at the top of its class. The Irvine Company, which celebrates its 150th anniversary in 2014, has long treasured land as a precious resource to be used for the benefit of the public. The gift will bring the grand total of parklands and open space donated by the Irvine Company to approximately 60% of the 93,000-acre Irvine Ranch.
Dan Young is President of Irvine Company Community Development, an Irvine Company affiliate responsible for residential development on The Irvine Ranch in Orange County, California. Mr. Young’s responsibilities include guiding Apartment Operations and Development and oversight of the Company’s portfolio of 130+ apartment communities containing more than 53,000 apartments. Because Mr. Young guides all facets of Irvine Company’s community master-planning and development process, which began more than 50 years ago, one of Mr. Young’s strategic initiatives is to leverage the power of advanced analytics, especially optimization modeling, performance analytics, demand/supply forecasting, consumer segmentation, and comprehensive forecasting/planning tools to guide both strategic and tactical decisions applied to the community master-planning and development process. Irvine Company had tried many approaches and large software offerings, yet was not realizing the performance they hoped for.
Irvine Company’s unique market position demanded an innovative approach to revenue management and analytics. Competitive Analytics delivered a wide and deep range of custom in-house analytical and business intelligence services to Irvine Company. These included developing a custom Rent-Value Optimization solution for optimizing multifamily rental units, optimizing renewal modeling, strategic forecasting, demand/supply, and numerous other analytical tasks.
Deliverables included designing and developing numerous business intelligence dashboards that provided deep and broad insight into operational performance on a portfolio level as well as by submarket, product, unit type, class, and down to the individual unit level. CA also developed a custom price optimization modeling that evaluated over 53,000 apartment units’ rent levels based on over 300 unique unit characteristics and over 50 macro/micro demand drivers. Other successful projects included a massive data cleansing of several databases, help design and develop a custom renewal optimization model, develop a forecast model, and develop a custom renter segmentation model. Competitive Analytics’ recent YE 2014 forecast for Irvine Company’s Orange County portfolio had an amazing 7 basis point variance with actual results.
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