What Role Will Big Data Play for CRE in 2018? Part I Retail The Future of Retail is Now

Posted on: Friday, December 22nd, 2017, under Data, Market Analytics.

Commercial Real Estate Data and InformationThere are countless prognostications about the future of retail that run the spectrum: a quick search for ‘the future of retail’ will tell you that brick and mortar retail is dying at the same time as it highlights successful eCommerce startups building dozens of retail stores across the country.

You already know the truth: retail is changing – just like it always has. If you go back 20 years and look at the headlines, they covered in the death of Main Street and the boom of the mall and big box retailing.

The real question is, ‘How is retail changing and what’s next?’

The answer is in the data.

Market Intelligence

Commercial Real Estate has always been about information: gathering it, analyzing it, and then providing your clients with value. What we’re excited most about is the influx of new information coming into CRE.

More and more, building owners are installing sensor technology to gather real-time pedestrian and vehicle traffic statistics. Combining this with unstructured data from sources like search engines and social media enables us to overlay traffic volume with other data, such as interests, behaviors and income, giving retailers real, actionable data to find their ideal location.

Being able to ascertain the revenue a specific type of retailer can generate from a given location in turn gives LL Reps more information so that they know precisely what NOI is possible.

On top of that, the trendy business model for retailers is to start out as an eCommerce-only store and then expand to have physical locations. This gives them a large amount of data about their customers when they’re shopping around with their Rep. They can see where their site is getting the most traffic from, and the common interests of their fans on Facebook and Twitter, and use that to help with site selection.

The Long-Awaited Internet of Things

IoT has been on pretty much every ‘what’s next’ list for years. The idea of creating smart buildings to adjust temperature, humidity, and lights has had people excited for ages. Now, the addition of tech to give us more location analytics so that retailers can learn more than ever before about people’s in-store purchasing behavior, giving retailers a better ability to determine what building layouts work best, and which ones don’t.

This, layered with traffic data, likely makes for the best-informed tenant in history.

The Meaning for Commercial Real Estate

From CRE’s point of view, the need will be centered around gathering actionable market data as quickly as possible. With it, Tenant Reps will be able to see what building layouts and assignable area they will need to maximize revenue for the store as well as ascertain reliable revenue models to make sure the location is a good long-term fit.

At RealMassive, we are creating real-time data analytics so you will be able to give your clients the best advice with the latest data to back it up. Want to find out how? Sign up for a demo.

The Benefits of Real-Time Data Management: Save Time & Increase Accuracy

Posted on: Tuesday, December 19th, 2017, under Open Data.

Commercial Real Estate Data Visualization

It’s not a stretch to say that business happens in real-time. Doors open and possibilities present themselves at a moment’s notice, and inaction can mean missed opportunities.

At the same time, information has become one of our most valuable commodities. Without accurate, up-to-date data, decision-making is instinctual rather than informed.

These facts are leading commercial real estate towards a new trend: real-time data aggregation.

What Real-Time Data Means

Real-time data effectively is information that is constantly being updated. In short, real-time data gives you the ability for more thorough analysis: the less time you spend gathering the data, the more you have to analyze its meaning.

It has been a trend in consumer-facing industries for a while: for example, when you’re booking a flight online or ordering an Uber. Once it becomes commonplace, you expect the information to be accurate to the minute and it marks a paradigm shift for an industry.

In commercial real estate, however, we haven’t encountered that shift yet. In the past, information on assets or leasing data was often looking back two or three weeks at best. To get the whole picture of what was going on in an entire market today, you would need a robust network and a lot of legwork to get an accurate snapshot.

The good news: that’s beginning to change.

How Real Time Data Benefits You

If a client or prospect has ever asked a question about the market and you’ve had to answer, ‘let me get back to you,’ real-time information can change how you do business.

Having an up-to-date portfolio of your agency’s listings streamlines the search experience and allows you to promote and lease properties more rapidly. What’s more, being able to keep track of market-wide trends and availability as they’re happening, rather than after-the-fact, enables you to make more informed decisions and give you a competitive advantage.

What’s Next

At RealMassive, our goal is to give you flexibility and control over your listings with automated, real-time data management tools to ensure you have your full marketplace presence at your fingertips at all times. We’ve been working hard to develop pioneering tools that not only give you the ability to better promote your listings, but to see market-wide data in real-time so that you can focus on taking advantage of changing trends rather than wasting resources to discover if they are happening.

For our latest solution, check out AutoPilot Property Listing Management Platform

“Commercial Real Estate is an Antiquated Business” and 5 other highlights from CRE//Tech 2017 in New York

Posted on: Thursday, December 14th, 2017, under Uncategorized.

Not many industry events have the ability to fill a conference agenda with leading voices from global companies, active industry venture capitalists, CIO’s from the most recognized brands and the leading landlords in New York City.

Last week, the team at CRE//Tech managed to not only assemble these leading voices in one room, but stacked them together to provide expert perspectives on the current state and future of not only CRE Technology, but CRE in general.

With so much expertise in one room, trying to capture all of the highlights would have been an impossible task. However, there were some key takeaways from the discussions that stood out. Here are the 5 comments or insights that caught our attention.

“What’s valuable in our spaces is investing in the
quality of life for our employees.”

CRE is becoming more human. It was a theme that resonated through most conversations as the future of work is evolving. For organizations like Bloomberg, the culture of the space is as important, if not more important, than the location. No longer are employees held captive, but when they are under a single roof, the value and character of those spaces must be attractive to a variety of workers.

Amenities like wellness spaces, food halls, conference centers, gyms, et cetera are increasingly important, but so is the way the space makes employees feel, how it represents the brand and how effectively it helps them manage their work. Technology has become the heart of modern commercial space.

“Selling into organizations that have been doing something a certain way
for generations is not easy.”

Much has been said about the challenge that comes with behavioral change. CRE’s resistance to technology was a primary topic of discussion, with most leaders essentially telling the audience that those holding on to antiquated business practices need to, essentially, “get over it.”

However, members of the VC panel correctly pointed out that the market is saturated and many startups have not only failed to understand the competitive landscape, but also to differentiate themselves in a crowded market.

As with the overall trends of digital transformation and industry disruption, modernizing and changing our industry will take time. The best technology doesn’t always win, so buyers need to understand the space and explore their options before defaulting to the first suitor.

“Tech has played a huge role in tracking
customer demands.”

If you’re responsible for some of the largest development projects in New York City or the biggest landlord, odds are you know a bit about market trends and what moves the market. These Industry titans spoke at length about how the human assets have become a bigger priority than the physical assets for businesses.

Investment is going up in places that feel “authentic” versus the traditional concept of “location.” Traditional data sources and institutional knowledge will quickly become less valuable as leaders begin to experiment with alternative data sources to optimize their strategy. It’s time to start expanding and experimenting beyond the norm and recent success stories are increasing a willingness to try.

“We aren’t in the availability and space industry,
we’re in the advisory business.”

The most fascinating panel included technology and digital leaders from the largest brokerages in the country. This group of leaders provided the necessary blueprint for driving change in CRE. With 30% of the market represented among them, they recognize that they will be the biggest drivers and accelerators of the technology shift for CRE.

All agreed that clients are actively looking for technology solutions and data to drive the process. CRE professionals need to understand that their clients expect experiences in their professional life that are equal to the digital experiences they have in their personal lives. These expectations require a change in the way businesses is conducted as the nature of relationships are changing.

The consensus is that trends that have digitized the residential real estate market will absolutely translate to the Commercial Real Estate market. Residential was fundamentally changed by giving the end consumer the ability to explore and discover. In CRE, the entire industry will benefit from this shift, but driving adoption will take time and the right technology solutions.

“Startups that think openly will get attention.”

When it comes to technology, automation solutions and those that don’t easily integrate will see the slowest growth. Technology is still a growing capability in CRE, so any additional work or heavy lifting required by an internal technology team is a deterrent. For many organizations, not just in CRE, complicated technology faces user adoption challenges that requires internal teams to invest heavily in training and often reducing the return on investment.

Overall, C-Suite representatives from the five largest brokerages in the country clearly stated that the industry must open up, work together and rapidly accelerate innovation. On multiple occasions, the panel acknowledged the “monopolistic nature” of the CRE Industry and clearly called for an end to closed-door practices and walled-off ecosystems.

Representing 30% of the national market, the panel essentially put organizations clinging to closed market, dated business practices on notice. They are willing to work together to find alternative solutions. They are willing to experiment and are open to change.

These 5 highlights are just a snippet of the insights and intelligence displayed at CRE//Tech. To capture the full experience of the panels, the tradeshow floor and the side conversations would require a much longer post. However, CRE//Tech has quickly established itself as a “must attend” event for not only Technology Startups, but the entire CRE Industry looking to understand what’s next.

Kudos to the entire team and we look forward to 2018!