Commercial Real Estate's Data Driven Future
Emerging Trends ›
Commercial Real Estate's Date Driven Future
Imagine a world where data can be analyzed, processed, and "think" within seconds. A world where data and systems are so interconnected it's thought of as one. At the start of Q4 2015, RE:Tech conducted a study on technology's impact on real estate investing. Survey respondents comprised of real estate investors, asset managers, and investment sales brokers.
In the real estate industry, data is the Holy Grail. It's the source of our knowledge and nearly all decision making capabilities. From investing to leasing, the data driven world of real estate enables businesses to compete and excel. In today's infinite world of software, how can future real estate driven businesses leverage data to increase performance?
According to a RE:Tech › Insight Survey, 35 percent of commercial real estate professionals believe software enables better decision making. Optimistically, several survey respondents believe smarter real estate software can evolve by "learning," similar to artificial intelligence or an "IBM Watson" like capability according to a real estate investor in Chicago.
The future of real estate may be in discovering new connections, not just to inform, but to actually assist in key business decisions. While enterprise software is becoming increasingly predictive by correlating data trends, the future may be to proactively articulate situations rather than reactive to market stimuli. In essence, the future of real estate may be programmed to be fully aware of the real estate experience and ecosystem.
"The future of our business is heavily rooted in data", according to an asset manager in New York. The future of real estate software will enable investors to make decisions that empower businesses to run more efficiently. According to a RE:Tech › Insight Survey, 51 percent of real estate professionals believe that qualified data is a primary decision making factor.
To fully capture the potential of real estate intelligence, visionary real estate companies will find new ways to leverage software and apply it to as many practical scenarios as possible. Additionally, 77 percent of real estate professionals believe that within the next five years, real estate companies will adopt a tech first methodology. Only then will software be able to spur innovation and raise the operating-performance bar across organizations.