Big Data 101: For Real Estate Brokers
Big data, by definition, is large sets of data that can be incredibly complex and extensive. The data can be gathered and extracted from many different sources, and the number of sources are increasing constantly in the current age of technology. The data is being extracted from social media activity, internet browsing activity and even location information based on your mobile device and where you are.
There are vast and incredibly large amounts of data on individuals available due to the way the world is connected today. The key to this data in the business world is harnessing its power to make more informed decisions and acting in possibly a more proactive way than a reactive way.
Utilizing Big Data in CRE
Utilizing big data has become a large demand for many industries as it can help to make better business decisions and increase efficiency as well as save costs. This is no different for real estate where data can really help to provide a benefit for clients as well as help in attracting more clients.
The benefit that can be provided to clients is incredibly large as being able harness big data and analyze it to make sense for a client can really help paint a better picture of what is truly going on in the market. This could help the client make a better-informed decision on purchasing, selling or leasing property which gives them more perceived value for working with your brokerage. For example, when working with retail clients, big data can be obtained to help determine where that retailers target demographic is living or travelling to for their shopping needs.
Data can also be utilized to help your brokerage know where to focus its efforts in the commercial sector. By gathering data to look at trends, your brokerage can determine what types of businesses are coming into your market or what types of individuals are residing or moving into your market so that you can focus your marketing efforts on these types of businesses. When marketing to them you will be able to use the data you have gathered to prove to them the location is a proper choice.
Transforming the Industry
Like other industries, data is also transforming CRE. Ely Razin of Credifi believes it is making the industry more transparent and acts as an additional partner in deals. The transformation is happening on many different levels such as finance, sales and building management.
When it comes to finance, it is helping investors get a better handle on what risk they may be looking. The data can help them determine even more about the history of the property and in addition the property the history of the owner as well. Digging into both public and private sources of data can help to determine where the owner is financially and if they are reliable.
On the building management spectrum of the transformation, sensors are being added to buildings that can collect when certain occurrences are happening such as temperature change. It can check these things so frequently that patterns and trends can be developed which can help determine when certain utilities or appliances should be utilized. This can greatly reduce expenses and help to run a building more efficiently.
How are you using big data to benefit your brokerage? We would love to keep the conversation going! Contact us.