The term big data sounds incredibly complicated, implying vast layers of statistics and trends to translate and then use to make solid predictions. It’s intimidating to those who not only don’t have access to big data, but who are also inexperienced in harnessing its power to make proactive and well-informed decisions.
By anyone’s estimation, though, big data is a valuable tool that reveals new trends and opportunities for those in commercial real estate. In fact, solution providers who give their clients enough content and numbers to navigate through all stages of the buying process are chosen 95% of the time over those who do not. Everyone is potentially accessing the same numbers as everyone else, but it’s the sort of questions these stats prompt that matter.
It’s clearly crucial to understand and use big data. How? Here are a few ways to turn the numbers into sales:
- Creating a comprehensive site evaluation. Office buildings equipped with sensor technology can provide real-time foot and vehicle traffic statistics and predictions. Such unstructured data, when merged with the property information already available in structured data outlets, creates a strategically tight target to identify appropriate tenants. Also crucial to consider are past price negotiations and loans, the current state of the property, maintenance costs, and policies. Transparent transactions are the goal.
- Predicting client behaviors and preferences. Well-researched assessments of a property help targeted buyers make decisions, whether they’re new tenants or currents tenants deciding whether to extend leases. Unstructured data that monitors leasing trends and stays current on related topics appearing on social media streams and via online opinions has a direct connection to identifying focused business opportunities. For example, with insights gleaned from recent increases and interest in shared office space, large offices are now being divided into smaller units to attract start-ups and sole proprietors, bundling shared services all tenants will need regardless of their industries. This is a clear response to predictive unstructured data layered with structured information.
- Revolutionizing property technologies. The needs and expectations of potential buyers and tenants are changing on a dime, and the only way to process and implement the most recent developments is by keeping current with big data. Analytics including every important entity in the sales process, as well as the use of smart sensors to manage up-to-the-minute energy resources on property, are necessary to acquiring and keeping buyers engaged.
Big data is all about making insider information available to those who formerly had limited access. One of the biggest complaints about big data is that major corporate players with deep pockets have invested in compiling data to be uniquely useful; it’s the governance of the data that gives smaller players pause. Transforming the numbers into meaningful and accessible business intelligence across the commercial real estate industry is the ultimate goal of the new big data. Using its power is the key to enabling innovations in the commercial real estate industry, as well as enabling growth, continued smart development, and profits.
Gain access to CRE Big Data through our innovative platform, built for Commercial Realtors. Sign up today.