For better or for worse, we live in a data-driven world. Everything we do, eat, wear, or Google leaves a digital footprint to be placed in an algorithm for further crunching, analysis, interpretation, and distribution.
The easiest example is to do an Internet search for anything – a new mattress or a future vacation destination – and see how quickly related information and ads appear in your Facebook newsfeed. From Netflix preferences to complex medical diagnostics, big data is transforming the way many industries conduct business.
For years, big data has transformed industries around the globe, and the growth of the Internet of Things has accelerated this trend. Banking and insurance are two such industries that have turned data analysis into an art. Thanks to modeling massive amounts of information, they are better able to see trends, steer marketing initiatives, and determine risk factors.
While the real estate industry has used data to a point – to get a better view of property values and taxes in a particular neighborhood, for example – 2017 is predicted to be the year that big data will have a much greater influence. The key phrase here is predictive analytics.
Simply stated, predictive analytics is the gathering and analyzing of data through a variety of means, including statistics, mining, and artificial intelligence, to make predictions about the future. For the commercial real estate industry, the availability of this information and the indication of trends can bring the client-broker relationship to a whole new level. Thanks to good data, the broker may be able to spot a client’s need before the client is even aware of the need.
Let’s say there is a client interested in making a real estate investment, perhaps to own a building and then to lease out space. If the local market doesn’t meet the client’s criteria, a smaller market might.
Armed with data, the broker can fine-tune and automatically obtain a location – perhaps a secondary market the client never considered, where prices are lower but future potential is high – and that future potential might be mapped with numerous points of data, from trends within a certain industry to overall economic factors and interest rates.
The key to strong predictive analytics is rich data gathering. To meet that need, companies and apps are popping up to compile data and overlay it so that the combination provides meaningful answers.
Among the data that can be used for a successful transaction:
Even unsuccessful deals can lend a helping hand. One app, for example, gets feedback from prospective tenants to analyze what about the property they didn’t like, such as the physical layout of the space, ceiling height, or windows. This information not only helps the broker to find a more suitable space for the tenant, but it also helps the broker work with the owner to consider renovations.
Morris Southeast Group is excited about technology and its ability to meet the needs of tenants, developers, and investors. Not only does it keep all parties satisfied and profitable, it also helps to keep our South Florida cities growing and vibrant.
Our firm has seen a lot of changes since it opened its doors in 1976. We’re proud to have grown with the times, and we look forward to always looking forward. To discover a commercial real estate property that meets all of your needs, contact Morris Southeast Group at 954.474.1776 for a free consultation. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.