This post originally appeared on tBL Marketplace Partner's ProspectNow Blog and is republished with permission. Find out how to syndicate your content with theBrokerList.
It is certainly no secret that commercial real estate is an information-driven business. That being said, the industry is beginning to embrace predictive analytics – something that will change the way brokers close deals and will help them grow their clientele. Let’s take a closer look at three things CRE brokers can learn from predictive analytics.
Promotes Better Investment Decisions
Predictive analytics can show brokers where the next investment opportunities are and can help them decide on which to act upon and send to owners in order to make deals happen, and which may not be a good investment decision. Predictive analytics will aggregate data such as demographic shifts, cost of capital and workforce trends among other and brokers will be able to show owners how the purchase of a property would drive value and fit well into their investment model. Brokers can also determine which assets in an owner’s portfolio have maximized its value and should be sold.
Predictive analytics can encourage brokers to feel confident enough to think outside of just the local market and offer investors opportunities all over the world. Many brokers develop expertise surrounding their local market and advise clients on investments within this local market, but with predictive analysis tools, they are able to open up more opportunities in other markets for their clients because they have hardcore data to back it up.
Predictive analytics expand the scope of what brokers can accomplish, helping them secure more deals and become a more valuable asset to owners and investors.
Predictive analysis can do wonders for investment ventures and it can also apply to leasing. Agency brokers can use predictive analysis to predict tenant behavior, helping them become more proactive in how they lease vacant space. Rather than making 20 cold calls a day searching for new tenants, they could focus on companies who are likely looking to move spaces based on the industry, employee headcount growth, and the behavior of firms in similar or the same industry under current market conditions.
The same goes for tenant retention – instead of waiting for a company to reveal that they are planning to move, the broker could discuss this sooner and start a discussion for what’s next in their plans to move spaces.
How ProspectNow Can Assist You
ProspectNow uses predictive analytics to identify properties that are most likely to be listed for sale, to be refinanced, or obtain a loan in the next 12 months before your competition has the chance. You will no longer be wasting your time or energy on marketing to property owners who have no intentions of selling.
The predictive algorithm looks at hundreds of data points every week on properties that are selling and then ProspectNow applies the characteristics of these properties that have recently sold to those that have not sold yet. This data will help keep you ahead of the curve and to have a leg up on your competition in order to land more clients and close more deals.
The post 3 Things CRE Brokers Can Learn From Predictive Analytics appeared first on ProspectNow.