The commercial real estate industry has its own set of established ways of working, but today, big data is changing the dynamics of the same established standards.
The current transaction data is no longer months old, but rather days old. Even before people set a foot inside your property, they have gone through your online ratings and shortlisted the properties they want to see.
Customers know how to match their requirements well in advance and then proceed with the decision making.
The new technology is helping gather data in volumes and rather rapidly. This data is proving quite helping for both the investors and businesses to drill down, sort, and focus only on the numbers that are beneficial for them.
With significant changes being introduced through big data every day, the real estate industry has started conducting itself in a better way. Here are four ways of how big data is changing the real estate industry:
1. Decision-making is getting better
The process of selling, leasing, or buying a real estate property seems straightforward until you have made the bid. Only once this has happened, you will start appreciating the smallest details that are considered in properties such as the comparable properties in the vicinity, features, the future growth of the property, and the upcoming changes in the demographics.
Yes, this information does exist in the world of data, but the problem arises when it comes to fetching this data from the right tool because the data is often unstructured and scattered all over the place.
This data can be found anywhere in hidden governmental listings, on social media channels, and some other local body listings.
Today, with the growing competition anyone who works in the real estate industry needs sufficient time to pay attention to the required real estate variables.
Big data comes into play by helping businesses narrow down different locations as per the neighborhood in the discussion, the economic benefits, and many other factors.
Big data will also help in understanding the current asking price, competitive bids, and will also help in making a sound yet informative investment decision.
2. Improved marketing strategies
Marketing has always been a pro-believer of marketing and analytics, but marketing that is data-driven in commercial real estate is taking shape on its own.
Real estate agents are often the ones with the responsibility to help the buyer make a personal bond with the commercial property they are investing in. This is when the right messaging at the right moment is considered important. And once again, we turn to data for more help.
There are numerous tools available to help people understand how to choose the best property in the neighborhood, how much money to invest, and the probable returns they can achieve in the future.
If you are not someone who likes to only depend on the online portals for information, you can also take help by looking at the physical records available.
With this data, you can get all your queries answered such as has there been an influx of residents? Any new urban renewal projects have been undertaken? Are there schools and colleges in the vicinity?
Now, more than before big data is helping people adjust the real estate compass for many people and also gives them answers to specific questions.
Big data is helping create smart customers, who have a mind of their own. However, this does not mean that marketing has to go out of the window.
We still need efforts to be created from a marketing perspective to reach the right target audience and helping them reach the right market.
3. Upgrading property maintenance
When it comes to properties, be it residential or commercial, they come with almost similar requirements, one of them primarily being property maintenance. By far, maintenance is one of the growing expenses for the property owners. Maintaining a commercial property or a warehouse is one of the biggest expenses that you will ever face.
But with the advent of big data and artificial intelligence, property maintenance is also getting streamlined. There are a few applications suited for property setting:
Commercial: There are numerous tools that make it easier for property owners to find the right tools, appliances, and finding any other industrial equivalent.
This makes the commercial real estate much more attractive and appealing to the developers as well as the owners. Building with features climate control and automated lighting feature automatically become easier to maintain and affordable to run.
Residential: You can get good returns when it comes to making your home a smart home. When these smart homes come with automation tools, the property instantly becomes appealing to the buyers and even better to maintain in daily routine.
The IoT devices for smart homes help the homeowners to focus the home energy consumption and regulate it at the same time.
When it comes to upgrading property maintenance, it becomes easier when dealing with commercial properties. Whether it is working with IoT devices, climate control, automated windowpanes, or automated fixing for leaky pipes, technology is here to stay.
4. Site development & selection
Analytical and mapping software are becoming simpler to access and draws information from multiple unstructured information. It is making it easier to build environmentally conscious engineered buildings and projects.
When it comes to commercial real estate projects, there has been a major push towards upscaling and recycling the building structures time and again.
In such scenarios, the building engineers have to meet the numerous sustainability requirements to make the future of the business a big hit. Some of those goals are:
To enhancing the site potential without overcrowding the residents, mapping the nearby transportation routes, crowding the nearby buildings, and if there are any negative effects on the local ecosystem.
To find the perfect design for the building, the equipment required, and how you can incorporate sustainable resources in the building. Today, buildings come with both mandatory and optional standards when it comes to using sustainable energy resources.
It is become about creating a sustainable property that can thrive in the future as well.
The number-crunching functionality introduced by big data is helping people make better financing decisions for their commercial real estate industry. If you are the investor, you can go through the sales figure from both the public and private sectors and then make a decision.
This is convenient but also logical. As a buyer, this data can be used to understand different aspects of every property such as renovations, age, agreements, and strength of the physical structure.
Big data continues to progress, as a real estate investor, you have to catch up with it every time it progresses. Keeping up with ever-changing technology is essential for your business.
With big data also incorporating the ease of use, soon without the help of big data it may become increasingly difficult to operate in the business. Make use of the data, tools, and get the much-needed competitive edge in the market.