June 14, 2019
Wall Street investing in 2019 looks a little different than it did 10 or 20+ years ago in part because of the rapid rise of big data. Big data has revolutionized the way we make investment decisions. And the prolific rise of algorithmic trading is indicative of its impact and success.
Algorithmic trading relies on computers to process huge sets of data through advanced math formulas. In turn, Wall Street investors are able to make very strong market predictions and trades. These algorithms are created to process historical data as well as the massive amounts of current data it is collecting at the speed of light. On the New York Stock Exchange alone, more than a terabyte of information is collected each day. The ever-increasing volume of data, paired with the volatility and speed at which things change in the market, have made algorithmic and predictive modeling so useful to many Wall Street investors.
Big data’s impact on commercial real estate
These same principles of leveraging data for maximum predictive impact are making waves in commercial real estate investing. Instead of playing a reactionary role in the market and relying on data that’s two months old, REITs, financial institutions, tax professionals and more are able to capitalize on real-time data to make more informed predictions about a market.
Access to up-to-the-minute data is invaluable to investors because it allows for more accurate market timing in commercial real estate. What investor doesn’t want a leg up on something so valuable to market success?
As an example of the rapid rate at which the commercial real estate market changes, RealMassive monitored the Las Vegas market during ICSC Recon 2019. Through innovative technology, the real-time data solutions provider revealed that over the course of the four-day conference, the average asking price for retail properties increased by 6.8%. In addition, the Las Vegas market saw a 3.35% increase in available retail properties from May 18-22.
Big data, and more specifically, real-time data, has transformed business models in the financial industry, and the same changes are taking shape in commercial real estate. In order for these business models to work, however, you need access to the freshest data available, and that’s where RealMassive comes in. Our database is chock-full of all the market data you need, when you need it. Contact us to learn more and reimagine the way you can do business in commercial real estate.