Real Estate Portfolio Optimization Midpoint Presentation Monday - - PowerPoint PPT Presentation

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ARIN: Analytics Research Intelligence Network analytics@scale

Real Estate Portfolio Optimization

Midpoint Presentation

Monday March 4, 2019

Iowa State University

Senior Design

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Leelabari Fulbel

Meeting Facilitator / Frontend Software Engineering

Colton Goode

Meeting Scribe / Backend Computer Engineering, Management of Information Systems

Blake Roberts

Project Lead / Backend Software Engineering

Kevin Johnson

Quality Control / Frontend Computer Engineering

Nickolas Moeller

Report Manager / Backend Software Engineering

The Team

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Gather requirements. Master the real estate domain and portfolio

• ptimization.

Design the system and create a working prototype. Test, iterate, and report out.

Bottom Line Up Front

Our mission is to design and develop a portfolio optimization system that meets the unique needs of a commercial real estate portfolio manager.

BLUF

Project Scope

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3

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Intro to Portfolio Optimization

Agenda

The Problem and Plan Demonstration Next Steps

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Intro to Portfolio Optimization

Agenda

The Problem and Plan Demonstration Next Steps

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Compare thousands of runs to identify the best strategies

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Define Constraints Calculate Inputs Optimize Local Knowledge

Portfolio optimization requires estimates of expected return and the asset covariance matrix Allow the user to express their beliefs about a given asset, market, lifecycle, or property type The user defines portfolio constraints. e.g. The portfolio’s allocation to NYC must be 35-40%

Portfolio Optimization

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Algorithm searches for the mixture of assets that minimizes

• r maximizes the objective

function (e.g. risk-adjusted return)

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Balancing Risk & Reward

Help PMs efficiently allocate capital and reduce portfolio risk

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Intro to Portfolio Optimization

Agenda

The Problem and Plan

Demonstration Next Steps

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No portfolio optimization currently being done in house Market level data analysis is outsourced

• Costar is expensive, slow, and

uncustomizable

The Problem

A Software that enables PM’s to optimize and compare their portfolios in real time Control data visuals through Microsoft’s Power BI

The Solution

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System Block Diagram

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Dash

• callbacks limit UI

possibilities

• can’t use JQuery
• difficult to use

JavaScript Modern Portfolio Theory Markowitz Optimization Dash UI/UX Power BI Integration

Strengths Weaknesses Challenges

Quality of Approach

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Intro to Portfolio Optimization

Agenda

The Problem and Plan

Demonstration

Next Steps

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App Demo

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Intro to Portfolio Optimization

Agenda

The Problem and Plan Demonstration

Next Steps

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Optimization results need be sent to Power BI for visualization Iterate Power BI dashboard design Iterate web application interface design Document code and procedures Deliver all project materials to the Principal Data Science team

Real Time Results UI Iteration and User Testing Documentation and Handoff

Next Steps

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Project Timeline

Sometimes you will want to use a subtitle​

April 1st, 2019 Connect database to dashboard

Update the dashboard automatically with newly formed optimization data

March 11th, 2019 Authentication

Automatic authentication so anyone can view the

• ptimization results

March 4th, 2019 Current progress

Perform optimization with constraints Embed a Power BI dashboard

April 29th, 2019 - May 3rd, 2019 Semester and Project End May 9th, 2019 Final Presentation

ISU CPRE 492 requirement

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Thank You – Questions?

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