Aggregation, Accessibility and Accuracy
For commercial real estate brokers, the process of collecting data has always been incredibly time consuming. In 2018, however, the growth of data and analytics platforms are completely changing that notion.
In the past, a commercial broker might find themselves seeking out property data from public records and municipal offices, often times needing to physically go and collect the data in person. The information was there to be had, it was simply very time consuming to actually track down and gather.
When it comes to real estate data, it has actually never been an issue of quantity, but instead an issue of time and trust for brokers to consistently and easily get data they can rely on. The lack of accuracy, the variety of sources needed, and the time needed to access those many sources have all made data collection a headache for brokers.
New technologies can efficiently collect and organize data thanks to advanced machine learning and algorithms that find and access property information on demand. These new platforms bring the data aggregation, accessibility, and accuracy needed for brokers to make the most of their time and more quickly source new deals.
Perhaps the biggest perk of commercial real estate tech platforms are their ability to collect data from many, many sources, then organize that data into a single database.
These platforms provide a depth and breadth of information not previously available to brokers, making the data aggregation two-fold.
On one hand, single data points for multiple properties can be collected across various sources. This creates data depth. For example, these platforms can collect property sales transactions for individual municipalities across the entire country, and bring them into a single database.
On the other hand, multiple data points on a single property can also be brought together into that same database, creating a wide breadth of data on every individual property. For example, that could mean that, for a single office building in Raleigh, North Carolina, building-level data, sales history, debt history, ownership data, contact information and more can all be brought into a single database.
From there, that depth and breadth of data can then also be aggregated into a single database, creating a true world of property information.
The depth and breadth of data being collected by these platforms is also very accessible, thanks to web platforms that enable users to search and filter properties by the aforementioned layers of data in real-time.
Brokers can search these massive databases in real-time, without having to “walk the block” to find actionable insights on prospect properties. Building and land-level data, transactional history, ownership data, and owner contact information are all immediately accessible on these web platforms, sitting only a few clicks away.
With this, commercial real estate brokers can quickly gain the insights necessary to know whether or not they should pursue a property. They can quickly identify indicators that a property is likely to sell in the near future.
By searching using data points that correlate to a property’s likelihood to sell (i.e. sale and debt history), brokers can generate a list of properties likely to be listed in the near future. The aggregation of data paired with its accessibility enables brokers to supercharge their prospecting efforts.
For example, with property sales history, they can see that a property has not been sold within the last 10 years. With debt history, they can see signs that a property is in distress, and is therefore likely to sell.
These platforms allow users to export this data as well to build lead lists of any size. Exported lists can include the same property and people-based information available through search platforms, allowing brokers to prioritize leads and view contact information in one place.
Another major concern for brokers is whether or not the data they are receiving is actually accurate.
Despite such high levels of data aggregation, these databases are extremely well-organized. As the data is aggregated, advanced technologies allow for the elimination of data duplicates and the consolidation of multiple datasets into one.
This saves brokers the time it normally takes to find the data they need, organize that data, and then double and triple check it for accuracy.
This is where the idea of trust comes into play. In being able to trust the data they’re gathering, brokers can now turn that into insights, to then use to build trust with their most desired prospects.
These new technologies allow brokers to search through off-market property data, as well. With data platforms like Reonomy, commercial real estate brokers have the ability to search the entire U.S. for property, people, and company-based data thanks to the ability to search off-market.
There are virtually no limits to an off-market property search. It can help brokers better understand entire markets, better understand individual prospect portfolios, and better inform all of their decisions with in-depth, accurate data.
From Lead to Close
The commercial real estate industry stands to become much more of a people-based industry, as these perks help brokers save the time needed to research and identify properties, and allow them to spend much more time building rapport with prospects.
All in all, new advanced technologies assist brokers and help them save time in every step of the process, from generating leads to closing deals.
The time needed to identify opportunities, find contact information, and build a trustworthy pitch is minimal compared to just a few years ago. The brokers that wait to adopt this new level of efficiency may find themselves falling behind in a hurry.
About Richard Sarkis, Reonomy CEO and Co-Founder: Richard Sarkis is CEO and Co-Founder of Reonomy, a commercial real estate data and analytics platform. Since the company’s founding in 2013, Sarkis has been instrumental in raising $68M in venture capital and led Reonomy through a successful web platform launch in New York City and the launch of a second, National platform in 2017.