Modern and sophisticated technology, together with its various platforms, supplies the need of man for fast, reliable, and less expensive information. The huge amount of data that most of us use to be informed and well updated of the things around us is dramatically changing all sorts of industries, be it in finance, health and even real estate.
Responding to a possible property transaction, designing building and even attending to tenant's notifications has never been easy since the introduction of data based technologies. In brief, big data is transforming how the real estate industry works. As to the words of Ely Razin, CEO of CrediFi, a big data platform for the commercial real estate finance market, she said via cbnc that;
"Big data is making the commercial real estate industry more transparent...It becomes a partner to the players to the community, whether they're brokers, lenders, investors or owners."
As of today, the roles of big data are to be seen on how it transforms the finance, sales and management aspect of real estate. And below are some of its most concrete examples.
Impact on Property Sales
Property sales are made easy through online exchange of information or data. The speed that data platforms provide makes the sale faster and results are easily seen or assessed. Ryan Masiello, co-founder and chief revenue officer of VTS, real estate start-up, aims to speed up the process of receiving feedback and comments from tenants to owners in order to help in the negotiating process. As to the words of the founder, Masiello, he said that;
"If 80 percent of prospective tenants aren't moving forward and giving you a proposal because they feel the space is priced too high, or the image of the space is wrong for them, like issues with the height of a ceiling or the size of a room, we capture that information directly,"
Impact on Building Management
Nowadays big data is also changing the ways on how buildings are being managed. An international director and head of business intelligence at Jones Lang LaSalle, DavidKollmorgen said that the "internet of things" is creating a way for a particular management task to be easily handled and even reducing the expenses and wait time for fixing a building concern. Kollmorgen, as an example stated on CNBC, said that;
"We've put sensors on the equipment in a building, for example, and every 15 seconds we get a read on the air temperature, if the fan is on or off. Then we can feed data into algorithms, like if this fan is working, then it shouldn't generate a work order to fix it. We can also figure out, is weather data correlating to x, y or z."
Impact on Real Estate Finance
In real estate finance, public and private data sources have been already aiding potential investor in making better investment decisions. Informations coming from public and license sources may help investors in analyzing how sound a building's physical structure and even know if the prospective owner is financially reliable. Likewise with the huge amount of data available, companies may also assess the financial details of the building such as building loan and investment platform.
These are but the few examples on how big data affects the real estate industry. This smarter approach with the use of this readily available piece of technology greatly which was thoroughly analyzed reduces waste of time and spending of valued assets.
