It is wise to do a significant amount of research and analysis when making an important business decision. In the commercial real estate industry, where data plays a major role, having an abundance of the right information can make or break a deal.
What is Commercial Real Estate Data?
Commercial Real Estate (CRE) data includes information on factors such as location, number of new businesses in a specific area, future developments, transit and walk scores, vacancy rates/tenant information, building size, zoning, demographics, market analysis, and even some non-traditional data such as consumer behaviors. Essentially, CRE brokers will use any data that could potentially impact a future project. It is important to be very meticulous when researching and analyzing each set of data and to ensure nothing is being overlooked. Failing to do so could result in an unsuccessful project and create more headaches than returns.
All of this data and more can be found through public records, brokerage reports, CRE associations, and general commercial real estate databases.
Why is CRE Data So Important?
Not only is CRE data important for measuring future success, it is also used by industry professionals to set themselves apart from the competition. Not everyone is willing to research and analyze data indepthly, or explore non-traditional datasets. However, for the ones that do, they will see their efforts pay off. Investing in CRE is a considerable financial commitment, therefore, investors will choose to work with those who can concisely provide the most accurate, comprehensive, and relevant data.
Who Should Be Paying Attention to CRE Data?
The more granular and accurate the data, the more CRE brokers are equipped to forecast and make predictions regarding the CRE market and assist their clients in making appropriate decisions. Their clients, or investors, and other real estate industry professionals will also benefit from exploring CRE data points. The level of depth for each category will depend on the particular industry professional, for example a lender might be more interested in occupancy data, while an investor might be more interested in demographic data. This type of synchronicity between all parties creates more opportunity for success.
If you’re looking to connect with other industry experts or are in need of financing for your next investment project, allow CALCAP Lending to be your resource.