Remember how cool the TI-82 graphic calculators were back in the day? Punching in data to create circles and parabolas was the height of calculation. Now computers sort millions of parameters and spit out results in seconds. Known as big data, the ability to sort through data sets to find trends and patterns is transforming how multiple industries conduct business. Commercial real estate is no exception. Over the last few years, we’ve watched big data make real estate agents more efficient at lead generation, improve property performance, and help investors make smarter decisions. The most exciting big data trends help CRE professionals maximize their return on investment.
Big data reports are meaningless if they cannot be easily digested quickly. That’s why many new software-as-a-service providers coming onto the CRE market tout their visual dashboards. Providers know most professionals aren’t research analysts. Information must be accessible, digestible, and easily searchable. This means sales analytics convert into frequently updated one-click charts, property managers see a circle graph noting the percentage of renters that are current or delinquent on the main page, and brokers can easily compare agent performance across any metric they prefer.
Artificial Intelligence and Real-Time Learning
Smart computing backs up big data. Today’s artificial intelligence is better than ever at learning what a user wants and providing the right information. Data can be processed in real-time for accurate reporting. Devices will be able to “talk” to each other and make necessary adjustments instantly. Other applications of artificial intelligence and real-time learning include providing current listings to an inquiry received by a chatbot, or a status update on a building’s HVAC efficiency.
Coinciding with the Internet of Things (IoT) explosion, big data captures information on everything about a space. Details captured by IoT devices stream into building management systems (BMS) for analysis to improve building performance. Malls equipped with the right sensor equipment can tell an interested leasing representative exactly how many patrons pass through a particular space during a given time period. Offices can automatically adjust temperature, humidity, and lights based on occupancy. Using big data, the possibilities for more efficient buildings are endless.
Security in IoT
Billions of smart devices are coming online, creating the burgeoning IoT field. IoT covers Wifi, smart thermostats, security systems, landscaping sensors, and more. Unfortunately, the security of most IoT systems needs a serious upgrade to prevent cyber threats. Expect more companies and providers to address ways to beef up IoT security to protect big data.
Real estate professionals are especially excited about blockchain’s potential to secure real estate transactions. Blockchain could secure contracts, cut down the escrow process and cut down on real estate fraud. Without big data, blockchain doesn’t work.
Big data isn’t the only current trend reshaping the CRE industry, but it has fingers in nearly every product in development for professionals from brokers to property tenants. The application strengthens industry relationships between all types of customers and clients: property managers and tenants agents and clients, and property investors and developers.