How Market Data Helps in Crafting Right CRE Investment Strategy

by

A few years ago, or even, a few decades ago it was said that investing in a real estate property takes experience and while there are big players in the market who’re experts, it’s really hard to lay a strong footing!

So what did that leave other people who are not ‘big’ players with?

They were always told that there’s no shortcut to learning when it comes its commercial real estate.

You have to enter the market, or as they call it, playground and make your moves and learn by experience.

While this strategy seemed to work for some, it didn’t for most others!

If you have a friend or relative who gets repelled by the very term ‘commercial real estate’, they probably fell into the category of not ‘big’ players and made many wrong decisions this resulting in huge losses. Times have changed now and so are the trends!

It’s no longer a rocket science to invest and make profits in the commercial real estate sector.

With the right knowledge of where, when and how to invest, you’ve almost won the war! And no, it’s high time that the myth of ‘experience is all that counts’ breaks!

The truth is that with advanced technologies, statistics, and observations, it’s totally possible to conduct a deep market study which acts as a yardstick for crafting the right CRE investment strategy.

So if you are one of those who got repelled by the idea of getting into commercial real estate business thinking it’d take years of experience to actually start making profits, this article is totally worth a read!

Here you’ll learn how the relevant market data can help in crafting a right CRE investment strategy! And what’s more? That which is pre-planned well has to get you good results.

Read on to know how market data can be used for making the Right decisions which are informed and scientific Let’s get started!

 

1) Statistics speak loud

Experience in the industry of real estate counted at the times where there was no advancement in the industry of statistics.

The subject of statistics has taken such a big leap today that all the big companies today to depend on this data for making crucial economic decisions.

Statistics will give you insights on the consumer buying patterns, consumer behavioral patterns, market study, a probability of hospitals getting built in an area and so on.

Let’s say statistics reveal that a particular area has a greater probability of buildings being put within one year.

Based on this statistical data, you will know that this area will have good market value and thus invest in properties around or in this area is a profitable deal for you!

Let me give you another example.

Let’s say the statistics reveal that within a year or two, there would be a boom in IT sector in a particular location and there are great chances of people moving into this place.

So investing in a property here and thinking of renting or leasing out residential property is a great idea!

As simply as that! Statistics has made life easy!

It has definitely made the life of commercial real estate investors easy!

These statistics will also help you in providing data regarding the best commercial real estate loans provider thus giving you a smooth flow in arranging for your finances as well.

 

2) Insights into customer preferences

With the market data available, better insights can be obtained on the customer preferences.

At the end of the day, the customer preferences are all that’s going to matter if you want to get into trading of commercial real estate property.

Market data helps you in knowing the lifestyle of customers that’ll help you a lot in designing the buildings in according to the changing tastes.

Technological needs are the most important ones these days. If you’re planning to rent out or lease out a building, then the most important thing to consider is the technological developments of the building.

A building that has good WiFi facilities is more preferred by the customers.

Knowing these data in prior will help you in designing the buildings in tandem with the customer preferences and thus rest assured that you’re not going to run into losses anyway!

That’s the power of market data! All you’ve got to know is who’s the best provider of correct and reliable market data, and the war is half won by you already!

 

3) Helps you in making better investment decisions

You don’t need the experience to know the best deals for a particular property.

What you’ll need is the market data that can tell you exactly what is the best price for your property.

Gone are those days when the real estate deal was closed months later after the first meet. The dealings are happening and the deals are closed much sooner now.

The market data helps by providing you the list of options from which you can choose from. Ranging from the best deals for your property to the best commercial real estate loans providers, it’s going to help you out.

A better investment decision can be taken only when you actually know the different options you have along with their pros and cons!

This way, you can weigh the pros and cons of each investment opportunity with a light of your own interests and financial conditions and take a call!

What’s better? Believing your friend’s opinion on the investment decisions or the market data which is more scientific and reliable?

The market data analysis is also suggested by most of the commercial property loan brokers.

In fact, there are many commercial property loan brokers who charge separate just for carrying out the market data analysis for you and consulting you on what property to invest upon!

So that must say something about the power of market data right?

 

4) Helps in making a proactive leasing representation

It’s not rare that we get to hear stories about landlords or the commercial property owners go under huge losses because their tenant outsmarted them which worked in their favor.

Why does this happen? Not everybody is an expert in analyzing the tenant behavior.

Thus not everyone pays great attention towards the clauses included in the lease deed. There can be some clauses which would have been included by the tenant that’s going to work against your interests down the line.

The only thing you can do to avoid such unseen losses is to take a proactive step.

Wouldn’t it be great if you knew the tenant behavioral patterns and then lease out the vacant space accordingly?

Of course, it is, right? That’s where market data comes into the picture.

It helps you in knowing the most common ways tenants try to cheat on their owners thus making you proactive towards those well in advance!

So with the market data helping you, you can rest assured that you aren’t going to run into deep losses.

 

5) Helps in getting the best rates for your property

There was a time when the property selling process was very tiresome and also risky.

The sellers didn’t know the actual rate of their property and thus there was too much space for cheating and frauds happening.

With the relevant market data, you’ll be able to find the best buyers who are willing to purchase your property.

You can choose from a list of potential buyers and only then think of selling your property to them. The market data or the Big data also enables you to know the past history of such buyers.

This way you know the buyers who are fraudulent and you can keep your distance from them. Thus, the market data avoids wastage of time on fraudulent buyers and helps you in getting the best rates for your property!

 

6) Better financing options

There are several ways through which finance can be raised for buying a real estate property. Anyone can tell this to you.

But which is the right way of raising finance for your property? Not everybody can give you an opinion on that.

Market data will help you in getting in touch with private commercial real estate loans providers who can not only tell you which is the best way to raise your finance but will also lend you private loans at the best interest rates.

Thus with the right market data, you can be exposed to better financing options.

They were some of the reasons on how the market data helps a real estate investor in crafting a better Commercial Real Estate property strategy.

With the help of different types of market data available useful in different segments, there are minimal chances of you making a wrong choice.

Using the market data in the best way and investing a good time in studying the market data will make or break the deal for you! Investing money is secondary! What’s primary is the investment of time.

So don’t hurry in jumping to conclusions while buying or selling your commercial real estate property.

Take your time to study the market data deeply and only then take a final call! Because making wrong decisions and regretting later would do no good!

Want to learn more? Get in touch with us today.

Similar Blog

How to use Commercial Loan for Rental Property?

How to use Commercial Loan for Rental Property?

The rental real estate market is now hot. In fact, for many investors, there has been no better time to invest. However, securing the financing required to purchase a real estate property can be quite tricky, especially when you plan to rent the property to profit...

Is Multifamily a Good Option in Rising Inflation?

Is Multifamily a Good Option in Rising Inflation?

The real estate industry has seen a lot of changes over the years. However, it is the current time of inflation the sector has been affected the most. Therefore, you must identify the right measures to help fight the current situation and help you thrive in the...

How PropTech Help CRE to Reduce Cost?

How PropTech Help CRE to Reduce Cost?

The PropTech property technology or solution has undoubtedly started to popularise in recent months. However, you must know that the platform is turning out to be a great assistance in reducing the cost. CRE has faced many challenges, including labor shortages,...

Want to learn more? Get in touch with us today.

Our experienced team is ready to assist with your financing needs.

Address:
2101 Cedar Springs Road Suite 1050 Dallas, TX 75201

Phone:
(972) 865-6205

Email:
info@privatecapitalinvestors.com