Having more accurate market big data has always been a distinct competitive advantage in Commercial Real Estate: it gives us the ability for better informed site selection, improved floorplan design, and the ability to provide more value to our clients than anyone else can.
Because of this, it’s understandable that CREs are wary of making any technological change. They’ve been building their data-gathering system since they entered the industry and it’s one of their most valuable assets. This is a large part of the reason why big data, which has revolutionized countless other industries, has been slowly adopted in Commercial Real Estate.
The thing is, technological change happens regardless of whether the industry, as a whole, wants it. And as tech makes it easier to gather and analyze market data, what was once a competitive advantage quickly becomes a liability. As real-time market data becomes the norm in Commercial Real Estate, early adopters will be able to seize market share with better information gathered more cheaply.
We have high expectations for the role of big data for CREs in 2018. New, easy-to-use software is giving us new ways to receive and interpret actionable data – in real time. We can now see how a given market is performing right now so you can spend less time gathering and analyzing market data and more time building relationships with your clients.
Here’s our prediction for big data’s role for CRE in 2018:
CRE companies will invest heavily in data and analytics platforms, which means data-centricity is quickly becoming the strategic choice among CRE executives. We’re beginning to use CRE data to shape our opinions and to come up with actionable strategies to use. Big data allow us to monitor trends in our industry as they develop, so we can stay one step ahead of the newest topics giving us the advantage to spot opportunities in leasing trends.
Improving Site Selection
With software to analyze big data, you can map out locations for your clients based on minimizing their employees’ average commute. Then, with real-time market information, you can look for properties that are available within that area and give them the most up-to-date pricing information: we can use real-time data to strategically pair the right space with the right tenant.
Being Able to Give Your Clients More Actionable Data
Being able to see your market in real time means you can see if one building in a particular area is leasing at below-market rates before their Owner Rep realizes it and increases their price per square foot. You can also see if the market is about to start a downturn and make sure they don’t sign a long-term lease and wait for better options down the road.
Building a Competitive Advantage
Today, utilizing big data and the newest tech available will give you an advantage over your competition. Today’s market intelligence platforms allow us to make informed insights on current value, risks, and opportunity costs. But, as more and more CREs adapt their intelligence-gathering to focus on real-time data, the value will shift from grabbing market share to just keeping up.