In today’s world of big data, informatica, and other data-driven approaches to business, commercial real estate has contributed extensively to this trend.
In recent years, the role of data in commercial real estate decision making has increased significantly due to this trend. As a result, more firms are developing specializations in this field to leverage latest technology and insights.
Data-driven insights have become common in most businesses, due to increased access to information from many sources. However, while using information with your eyes closed can be fun, more importantly you can get better results quicker by doing something about it.
This article will go more in depth on the different types of data-driven insights and how they can be applied for commercial real estate decisions.
Understand your market
Once you have identified a market to focus your efforts in, the next step is to understand it well. What problem does it solve? Who is buying and leasing property in your area?
What kind of property does it predominantly lease? Condos vs. apartments? Retail vs. office space? These questions will help you determine what your business can offer clients and what strategy will work best for you and your company.
A well-informed client is a happy client. When you can make decisions on the basis of data, not only will you achieve better results than when you rely on intuition alone, you’ll also be able to maintain confidence in yourself and in your team.
The more data we have about a market the more accurate our decisions will be.
Understand your assets
Once you have gathered your information, it is time to put it to use. Your assets can be commercial, retail, office, or other property.
Commercial real estate has both private and public sectors. This makes it special as both parties need to rely on the other for support.
For example, an office space must have supplies and a waste management system in place for support from the public. Or maybe the space needs additional parking or guidelines for use must be established.
With this type of support from the community, there should be an understanding of what supports the space and what supports the community as a whole. This can help guide decisions such as rent and size of space.
How to collect data
Data-driven insights can be a valuable tool in the commercial real estate decision-making process. There are many data sources that offer valuable information, and your eyes are the best evidence of this.
To use data-driven insights effectively, professionals must learn how to collect data from multiple sources. This may sound harder than it is.
Most companies now have web sites and email addresses for purposes. When professionals look to collect data from websites, they should also make efforts to make appropriate notes and create suitable analyses to hold in their minds.
In this article, we discuss some tips on how to use data-driven insights to better understand your market, what conversions you need to reach, and ultimately what projects you should invest in.
Import data into a database
Once you have data in your system, the next step is to import it into your decision-making pool. Importing data can be tricky, though!
Some sources of information are considered more authoritative than others. You can find out which authorities have given a certain score to a property, for example.
An authority’s score can be imported into your database as a source of data. Once imported, you can use this data in your decisions!
In this article, we will talk about ways to import foreign-currency transactions into your database so that you can use those transactions in your commercial real estate analysis. We will also discuss ways to extract insights from these transactions so that you can do further research.
Create a strategy to analyze data
Data-driven insights are a powerful tool for commercial real estate decision making. As the owner or agent for a property, you can use data to gauge interest, search popular communities, and determine if there are trends in properties.
Data also can be used to help understand your market versus the rest of the country or world. For example, a property in a very desirable location may draw higher than average demand due to its high-end appeal.
As an agent, you can analyze data to help understand your clientele and what they want in a property. As an area manager, you can look at trends in property interest and try to Address those with features and upgrades. All of these approaches show how data driven insights can aid in different areas of commercial real estate decision making.
Review historical data
Data-driven insights provide a powerful foundation for business intelligence ( BI ) applications. Many startups and larger companies have built-in capabilities for DATA-DRIVEN INFORMED REFLECTION .
Data-driven insights can be extremely useful when applied to commercial real estate. Some of the benefits include:
When data is used to help make a decision, there is a higher level of confidence in the decision making process. This can boost your brand recognition and confidence in your commercial real estate expertise.
When added to business intelligence tools, data can make a powerful combo that boosts user productivity. Users can then get more out of their applications which increases their overall productivity and success in business intelligence.
When used in business intelligence tools, data can boost user productivity by providing additional information or resources that they need to use the application.
Identify trends in data
Data has become a valuable resource for commercial real estate decision-making. As the internet and technology continue to grow and evolve, data trends continue to do so as well.
For example, in a few years will the reliance on Sales Predictions be considered abnormal? Or will data-driven insights be the norm?
In this day and age, it is important to identify trends in data. If you look at your data collection tools, they probably have a very limited amount of changes that can be made.
It is not cost effective to fix issues in software when new features require new software licenses. As a developer, you must keep your access rights current to keep your product up-to-date.
Make informed decisions for your commercial real estate assets
As the owner or representative of a property, you have a responsibility to understand your assets and what makes them valuable. This can be as simple as looking at the exterior paint color or studying where the parking spaces and offices should be located.
Understanding your property’s characteristics such as size, location, market conditions, and anticipated growth are some of the critical elements that determine what asset you want to purchase and what price you should pay for it.
When looking at new properties, try to schedule at least one previous buyer’s inspection to ensure there are no significant issues with the property that have been overlooked. Likewise, when buying a property make sure to take into account how much it cost previous owners to upkeep it, repairs needed, and any protection from buyers that it might provide.