How Data Is Turning the World of Commercial Real Estate Upside Down, With Rob Finlay
As if the big competitive industries weren’t complex enough, the global pandemic has turned the commercial real estate industry on its head. For real estate agents, brokers and investors, the recent freeze in the residential real estate market has panicked both buyers and sellers.
To provide stability for both residential and commercial property trends and services, everyone has paid attention to data analytics. Today’s world is dominated by technology and commercial real estate companies are no exception. Rob Finlay, founder and CEO of Thirty capitalunderstands this more than anyone.
Commercial real estate (CRE) development firms like Finlay’s are looking for technology to streamline operations and generate higher returns for investors. Here’s how the big world of data analytics and technology has impacted commercial property investment opportunities:
Predicting market trends and consumer behavior
“Data analysis isn’t just about responding to trends; it can also be about predicting them, ”explains Finlay when discussing the Benefits of data analysis. “Using this technology to predict consumer behavior and market trends is revolutionary in itself and people must benefit from it. “
From monitoring home equity and tracking mortgage payments to matching this information with the age of a home and the length of time the owner has lived, data analysis can help agents focus and investigate upcoming trends. This data can be used to identify when someone is preparing to sell their home and analyze new leads in the commercial real estate market.
Even tracking income levels and job shifts can help brokers and investors predict where foreclosure might be on the horizon. This can further help them determine areas where prices could go up or down and how to attract certain customers to a new opportunity.
Industry growth and the use of AI
For decades, people have explored the science behind artificial intelligence (AI) and how to leverage its power in today’s leading industries. Understanding these benefits can prove to be profitable for your commercial real estate company.
Deep learning, or a branch of machine learning that includes the artificial neural networks of the brain, has contributed massively to the spread of AI. In the world of technology, AI development is an incredible human achievement.
Predictive analytics is combined with other analytical tools to make an accurate decision about investment methods. For example, portfolio managers can analyze consumer behavior to identify potential home buyers or sellers in a particular area.
AI also has the advantage of analyzing a large amount of information while eliminating human bias. By integrating AI into investment methods, commercial real estate has a competitive advantage in the market today.
CRE’s refusal to use data analytics
If there are so many benefits to using data analysts, why are so many CRE investors refusing to use them? Some investors are simply not aware of the extensive benefits or uses in their business.
The research and gathering can take some time, and company managers may find that the market-related data does not meet certain specifications. Also, they may find the time and effort involved in getting this data pointless.
In other cases, managers and investors may not have the resources to review and study the data. It takes a lot of work to effectively analyze and review the data to further determine whether it is even suitable for your investment process.
Some managers believe that data analysis tools are not worth it and then choose to scan the data instead of analyzing it to the extent necessary. In addition, obfuscated data can create problems and alter potential ROI assessments.
How CRE companies can leverage data analytics today
Cultural shifting within an already established industry can be quite difficult, and it’s easy to see why real estate agents and investors are skeptical at first.
Such a change requires a certain amount of cooperation and communication, and one cannot expect everyone to understand. In order to convince an entire organization of its advantages, the executives of this organization must promote the idea of a new data analysis.
“At Thirty Capital, we understand the critical role technology and data analytics can play in commercial real estate investing, ”explains Finlay. “Our team of professionals are working to combine this type of revolutionary technology with our experience to help our customers increase their profits. “
Integrate AI, for example, is only one way to increase the stakes in your investment strategy and commercial real estate investors should be able to communicate this effectively. While many think that AI is just a fancy way to automate certain tasks, understanding that a data-driven mindset is essential to any company’s future success.
If investors don’t care enough about data, corporate cultures cannot use this technology successfully and to the company’s advantage.
The age of innovation
A few years ago, CRE brokers and agents spent a lot of time researching and evaluating real estate and market trends in order to accurately answer real estate and buyer questions.
But today companies like Thirty Capital are learning how to use data analysts to their advantage. “With these new, innovative methods of data analysis, we can now save a lot of time and money and simplify the process as a whole,” says Finlay.
This enables brokers to focus their attention on connecting with their clients and helping them take a closer look at a property and its potential.