JLL expands proptech valuation products to fully support U.S. multi-housing clients
Valorem, JLL’s proprietary tool, is the first industry-wide to offer both a Rental AVM and Capital Value AVM for a holistic view of risk and opportunity
CHICAGO, July 26, 2022 – JLL’s Valuation Advisory group has expanded its offerings within Valorem, its proprietary property intelligence and technology tool to provide a higher level of risk analysis and opportunity for residential and multi-housing clients.
“In talking with clients, we found that sophisticated technology solutions that allow them to access all of their property level valuation information with the click of a button was critical,” said Tony Lenamon, CEO, JLL Valuation Advisory, Americas. “The enhancements within Valorem now allow our clients to see how individual attributes impact value and understand macro trends in the data based on each attribute. We look forward to expanding advanced, client-facing valuation technology coverage to all asset types nationally.”
The Valorem platform, which launched in March 2022, provides a single tool for clients to organize and manage their portfolio, property and valuation data. Additionally, the platform provides the ability to collaborate and share information among team members while exploring valuation results, along with portfolio tracking and interactive risk assessment features.
When originally launched, Valorem offered a Rental Automated Valuation Model (AVM) as a way of providing real-time multi-housing rental market values to clients. The AVM is an algorithm-based computer program built by valuation advisory professionals uses statistical models, valuations, and JLL’s proprietary database to provide estimates of multi-housing property rental values. Developed in-house, this tool allows investors to monitor and report on market movements in their portfolios for accounting purposes and for lenders to quickly assess an underwriting position. It quickly calculates an apartment’s rental value at a specific point in time by analyzing comparable transactions, current asking prices, historical price movements and property attributes.
New to market and the first in the industry, Valorem now offers a Capital Value AVM, which can calculate entire building capital values based on multiple variables, including direct cap income approach, detailed property attributes, detailed unit attributes, socio-economic factors, and neighborhood and market attributes. Using AI ‘explain-ability’, the model provides a detailed breakdown on what drives the property value between the different components.
“We are continually improving our technology offerings with the goal of having always-on insights available for all property types at a global level,” added Charles Fisher with JLL Valuation Advisory’s Global Product Team. “Of course, this never negates the need for human intelligence in valuations, which in partnership with leading technology provides the ultimate solution for our clients.”
JLL Valuation Advisory is the essential guide to the changing face of real estate values and risk. The team brings together unrivalled human intelligence and experience, with continuous, data-driven insights to uncover a panoramic view of value and risk across sectors and geographies.
JLL’s 2,000 qualified valuation professionals are connected across more than 50 countries, sharing insights and real-time data to advise on changing market dynamics and trends before they happen. A global community of sector-based specialists, the team delivers tailored client solutions for your real estate and business asset interests, giving an accurate picture of value and risk across any opportunity.
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U.S. property valuation and tax consulting services are performed by JLL Valuation & Advisory Services, LLC, a wholly owned indirect subsidiary of Jones Lang LaSalle Incorporated.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.