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How big firms can use big data analytics?
2.5 quintillion bytes of data are created each day.
Now imagine all the insights from this data at your disposal. All the information you need, right from the changing market trends to your competitors’ business strategy; you have a chance to know it all. With the right tools and clever use, one can easily become the market leader in no time.
With the rapid pace at which the big data technology has been progressing, no sector has remained untouched. The growth of big data in the commercial real estate has been slow when compared to other sectors. And retail in specific has undergone a massive transition. While most of the discussions in the older times were made based on gut feeling and first impressions; today, the systems works in a very different way.
In today’s’ world, no decision is made without thoroughly analyzing the data generated through various channels. There was a time when these expert tools weren’t available to everyone, but only a few. But that’s not the case anymore. Due to the boom in personal computing power, anyone can now find the relevant information they want; which in past would have cumbersome and time-consuming to collect otherwise.
But knowing a bunch of things about a certain property is only the tip of the ice-burg. Bigdata in commercial real estate comes with a larger impact on the industry, especially for the realtors. Here are a few ways in which real estate agents are benefiting from big data analytics –
1.Improved financial decision making
In commercial real estate finance, number crunching from the public and private data sources are already helping potential investors make better decisions. As an investor, you can look up the sales figure from private and public sources and then come to a conclusion. This is not only convenient but also allows for better decisions.
CrediFi’s Razin, a company, uses credit risk algorithms to analyze immense data to produce the risk score for regional real estate. They do this by taking into accounts factors like how sound is the physical structure when was it last renovated, owner’s financial reliability etc.
As a buyer, you can get insights into various aspects of properties like physical structure, renovations, licenses, agreements etc. The more information you have about a property, the easier and quicker it is for you to make a decision.
2. Efficient decision making
When evaluating, whether to buy or to sell, it is paramount that you know all the aspects of that property, as only then you can get the best price possible. Thanks to big data analytics, you can get customer feedback about each property, regardless of whether it’s from tenants, property owners or investors. Big data collates information about all the stakeholders involved in the process of property sale.
When you have access to feedback that is targeted and effective, you can quicken the process of negotiating prices, and the sales can happen much faster
3. Property management and maintenance
With the help of automation software and various other technological advancements, keeping a property in great shape is not all that difficult. Advancements like sensors that sense and raise alerts when there is a change in temperature, pressure and other factors, which can be configured by the user, allow for better management of resources for maintaining a property and reduction in wastage significantly.
4. Marketing Insights
Social media is a goldmine for consumer data and feedback. Real estate agents can use big data to target the right people with the right message every time. It identifies customers thought demographics, behavior, interests etc. It is simply amazing how closely you can analyze trends and modify your marketing strategy accordingly.
As the big data technology progresses, new trends emerge every day. For a realtor, it is important to be ahead of the tide every time. With big data analytics becoming more and more accessible and user-friendly every day, it will soon be impossible to function successfully in the market without fully exploiting its potential.