How Big Data Can Help the Commercial Real Estate Space
Data analytics and Big Data have become the buzzwords in the service industries. When it comes to the real estate space, Big Data is transforming trends big time. Consumer behavior determines market forces in the real estate sector to a great extent. From identifying consumer choices to building robust consumer relationships, big data analytics play a highly significant role across the CRE or Commercial Real Estate space.
Real estate investments are perhaps the most valuable and precious investments in one’s life. Investing in a property is a lifelong affair, and investors will always want it to be highly profitable. It’s here that real estate data plays the pivotal role. By helping you gain crystal clear insights into consumer behavior, preferences, and market dynamics, this data sets will render useful support in the decision-making process. A quick look at stats will help you understand the situation better.
Market stats have a lot to reveal about the significance of data analytics in the real estate sector. If global reports on real estate big data are anything to go by, nearly 78% of enterprises and companies are striving hard to improve data analytics efforts since 2010. From affecting consumers’ preferences to influencing company decisions, there’s no denying the importance of Big Data across processes. Before we delve deep into the nuances of the topic, let’s take a look at how data analytics impacts and affects the commercial real estate space.
Getting to know the facts
Gone are the days when traditional property information and data offered restricted access. With the rapid commoditization of this data, every single entity in the sales and purchase cycle enjoys access to crucial information. Real estate companies are putting their best foot forward thus delivering personalized experiences to clients. The uninhibited access to crucial data sets helps them gain practical insights into consumer behavior and preferences.
How do these real estate companies and service providers leverage data in commercial real estate space? Here are the answers:
1. Powerful integrations and complex algorithms
When it comes to obtaining crucial data, you will come across two significant sources. Identification of these sources is important as it helps you identify data types.
- Structured data sources
- Unstructured data sources
While working with data, data analytics experts will surely come across these two crucial sources. By aggregating and collecting data from these sources, data extraction experts will unravel trends in the CRE sector. Here’s what they do for you!
- Insights into clients’ behavior
- Predictive analysis
- Identifying data-generating devices
- Using algorithms
- Cloud-based data mash-ups
These are some of the resources helping them perform successful and targeted data analytics. Customers will surely gain informative and visually appealing insights. There’s no denying the fact that big data analytics is an innovation. However, it’s a two-way thing.
While companies have the opportunity to know what their consumers like, customers also develop the power to understand their own requirements. Big data influences, affects and controls consumer thoughts to a great extent.
2. Revolutionizing the real estate space
Real estate investments are important and critical. You simply can’t deny the importance of profound analysis, assessment, and discussions while buying a property. It’s here that Big Data steps into the picture. From helping companies make property sale or lease decisions to revolutionizing day-to-day functions, Big Data analytics extends comprehensive support across processes.
Quite naturally, some of the leading companies and real estate biggies are embracing data analytics like never before! Before we get into discussing the benefits, let’s take a look at the market scenario
Some of the leading names in the commercial real estate landscape are warming up to data analytics. Here’s how:
a) BlockAvenue: Let’s take the example of BlockAvenue. The company focuses on crucial metrics thus helping consumers make better decisions. As they offer crucial data through their website, potential property buyers will have the opportunity to choose their favorite plots or property. The company promotes a unique and innovative evaluation system where there’s a grade for every 300 sq.ft space. Consumers can find out the accessibility of a place to focal destinations such as parks, hospitals, schools, colleges, hotels, airports, and railway terminus, and other important areas.
b) View-The-Space: While some of the real estate ventures in the commercial space are adopting big data analytics at a rapid pace, some of them are taking the revolution forward. Companies like View-The-Space create videos thus tracking consumer behavior. Brokers get the opportunity to identify the preferences of their target consumers and potential investors.
Although the technique is different, both these CRE companies have leveraged big data, and there are no second thoughts about it. With such remarkable instances in the market, it’s high time to track the benefits of leveraging big data across the CRE sector.
How does it help?
While assessing the benefits and role of Big Data in the commercial real estate space, make sure you know the basics first. When it comes to the real-estate industry, data analytics, and extraction helps both investors and the realtor. Let’s get down to understanding what it does for real estate companies:
1. Insights into consumer preferences
Established and reputed realtors always wish to deliver amazing results. Buyers will always find a multitude of choices and options while planning to buy properties from them. So, what makes it possible? How would a company manage to know diverse clients’ choices?
Big data is the answer. By offering crucial, accurate, and clear insights into consumers’ purchase behavior, buying choices, and preferences, big data helps them offer a wide range of options.
2. Workplace management
Decision-making is an integral part of entrepreneurship. If you are running a real estate business, you must keep track of employees and their activities. With the help of big data, you can manage your workplace and workforce thus ensuring optimum utilization of resources. That surely helps you in making informed decisions.
3. Tracking employee activities
With tech innovations giving rise to massive transformations across sectors, it has become highly imperative to include it in business strategies. That’s what most of the companies are doing. They are leveraging data analytics to track employee growth, activities, and performance. Quite naturally, that will lead to the professional and personal growth of your employees.
These aspects explain the significance of big data for real estate company owners. If you happen to be a consumer or potential property investor, real estate data extraction or web scraping for real estate will ensure countless benefits too.
Transparency and mutual intelligibility are two of the most crucial aspects in the commercial real estate space. Realtors should be clear about their property details, costs, and policies. Since it involves huge investments, transparent approaches are crucial necessities and not just a choice.
On the other end, mutual intelligibility will ensure that you and your clients are on the same page. It’s highly imperative to understand their requirements as that will determine the purchase process. Here’s how big data becomes the most reliable partners to real estate players!
1. Changing finance management for the better
Investors have the opportunity to crunch sales figures and market prices from both public and private sources. That is ensuing optimum convenience for them, as they can make informed decisions.
From knowing about the current state of the property, its physical structure, and renovations to agreements and license, buyers will gain crystal clear insights into every crucial aspect. That will accelerate the decision-making process, thus helping buyers make informed purchase decisions.
2. Revolutionizing property sales
Assessment of property, price negotiations, and loans are some of the important factors associated with the project. If you are trying to sell a property, it will be important to know what your target buyers think about it.
Big Data analytics will help you get customer feedback about a property. From tenants and property owners to buyers and investors, big data will include every important entity in the sales process. With targeted and effective feedback, you can speed up price negotiations and property sales.
3. Improving property management
With Internet-of-Things and smart innovations ruling several sectors, property managers and realtors have unique opportunities to maintain their buildings. Some of the leading companies are resorting to smart sensors capable of maintaining air pressure, room temperature, and internal environments of a building.
Such technologies reduce the wastage of energy resources to a great extent. That’s not all; problems get identified and solved within an instant! Although it might incur initial investments, smart technologies will offer great returns in the long run.
Commercial Real Estate or CRE offers ample opportunities to buyers, property owners, and investors. With big data and data analytics joining hands with CRE processes and technologies, the commercial real estate sector is surely heading towards a bright future with insights generated from smart implementation of big data strategies. Embrace the power of big data and give rise to innovations in the commercial real estate sector. That will ensure business growth, development, and profits.