Everyone understands the value of collecting and analyzing data for business purposes, which is especially true for commercial real estate companies. Innovations have impacted nearly every type of CRE professional in data technology at some level. By understanding how to curate a better environment for tenants, investors could shift their tenant’s view that real estate leases are not just a set of expenses, but more of an asset that adds value to their business. With the recent rise of technology, companies have more access to data than ever before—a phenomenon referred to as the collection of ‘big data.’
“Commercial real estate is a $12 trillion industry and the ability to make better data-driven decisions can save time and money for almost everyone involved.”
Big data is a treasured buzzword these days, but for many—it can seem a little ambiguous! Making sense of that ambiguity is essential to analysts like Christina Stathopolous, an associate professor of big data and analytics at IE Business School. “Most of the time companies aren’t using true big data, but unfortunately think they are. It can be confusing, but incredibly effective if properly understood and utilized.” For the unfamiliar, “big data” is a term that’s used to describe the mass amount of information flowing in and out of businesses every day. Even though the name emphasizes the measure of the data, the size is not what’s important. How we use big data is what makes it so valuable.
The proper examination of big data can be used to highlight information that can prompt improved decision-making, identify new business opportunities, and reduce risk. At Motionloft, big data is being used to, “to provide real-time pedestrian and vehicle traffic statistics and analysis. A property owner looking to lease the ground-floor retail space of a building in Midtown Manhattan can mesh Motionloft traffic detail for that particular address with the wealth of property information already stored in its accounting system. This layered data can then be used to strategically match the space to appropriate tenants and to strengthen the associated marketing materials.”
Big data gives companies the ability to:
- Gather real-time pedestrian and vehicle traffic statistics
- Track the interests, behaviors, and average income within the population of a specified location
- Detect motion, light, and temperature
- Eliminate waste (utility usage)
- Understand optimal floor plan designs
- Eliminate traffic bottlenecks, making buildings safer and more efficient
Having the capacity to answer questions like, “Are we utilizing a space properly?”, “How much pedestrian activity is in a given area?” or “Is there an area of the building that requires a greater consumption of electricity?” are optimal to create a higher ROI. However, until now, those answers haven’t been easy to answer.
Real Estate Finance, Investment and Technology expert Dustin Dunham recently stated that, “Commercial real estate is a $12 trillion industry and the ability to make better data-driven decisions can save time and money for almost everyone involved.” Additionally, according to Richard Brown, “Data scientists and analytics platforms for corporate real estate like JLL’s RED platform, can use predictive modeling to quantify and improve the value of a company’s real estate. Data is a powerful force to wield, whether it’s for a portfolio of 10 properties—or 10,000.” Like always, the proof is in the pudding—and we’re sure it’ll taste good.
By: Alexa Davis—Content Strategy @ BlockVue