5 Ways Predictive Analytics Helps CRE Pros
Clients expect commercial real estate professionals to know their “stuff,” whether it’s leasing numbers or neighborhood trends. Mining the mountains of data to identify the essential numbers is one of the industry’s pain points. Predictive analytics is the CRE pro’s solution. Using the power of cloud computing and big data, predictive analytics finds patterns that otherwise wouldn’t be obvious, improving commercial real estate performance in numerous ways.
Make better investment decisions
Real estate investors and the brokers/agents that serve them use predictive analytics to inform their acquisition and disposition decisions. Make portfolios perform better. Analytics examines similar properties and the property’s current data to predict how the investment will perform in the future. Investors can see when it’s time to divest of a property or if a location is a good deal to purchase.
Understand market changes
Easily see shifting trends in an ever-changing real estate marketplace. Analytics can predict demographic shifts, changes in an area’s workforce, capital costs and more. Gain insightful market projections valuable to agents, brokers, developers, and investors. The real power here is not just in understanding a local market; with predictive analytics, CRE professionals can tap into outside markets to see how properties in other cities could be a wise investment.
Find better prospects
Predictive analytics is perfect for zeroing in on potential new clients for real estate agents or the best tenants for a commercial space. Identify who is ready to move, buy, or lease and target marketing efforts to them. Marketing to the right people at the right time reduces marketing expenses and increases returns. At the same time, understand your current customers better and deliver services designed to meet their needs.
Figure out how to close deals
Agents and brokers are applying analytics to target the best sales practices for them to move a potential lead to a closed deal. Analytics reveals the chain of events most likely to shift a lead to a client. This data helps real estate professionals maximize their daily workflow and increase their revenue stream.
Smart building managers
Property managers and smart building managers can leverage predictive analytics to identify the “hotspots” in their properties. Predictive analytics can monitor the building systems and notify managers when hardware and equipment will need to be replaced. By tracking tenant requests, contractor work, and repair history, it can find patterns that indicate potential problems. By staying on top of maintenance in this way, building owners can save thousands in expensive equipment repair costs.