Analytics is not new to the world of commercial real estate, but new startups are rapidly changing how CRE professionals approach business. Among those firms is Megalytics. The tech startup was recently chosen as one of five companies to participate in the Elmspring Session 2.0 accelerator. Since then, Megalytics has completed its beta testing phase and has now gone live. With that launch, institutional real estate clients are now able to take advantage of a real time risk assessment and due diligence platform.

How Megalytics Works

Marketed as the most comprehensive platform of its type in the commercial real estate industry, Megalytics provides more than a dozen risk components in real time. Users can opt to bundle or unbundle those features based on their individual requirements. With the data provided by Megalytics, commercial real estate lenders and owners are empowered to make more informed decisions by better understanding the risks related to credit underwriting, portfolio management, and tenant risk assessment.

The platform is built based on the use of proprietary coring algorithms and data. This makes it much easier for clients to put vast amounts of data into context. Consequently, commercial real estate professionals can leverage actionable results based on truly verifiable information. As such, the platform is able to replace a tremendous amount of the physical labor that property owners previously had to utilize in order to perform the due diligence necessary when considering potential acquisitions. Such transactions typically involve a significant amount of risk; however, since the scoring model used in Megalytics' platform is customized to the real estate industry, it becomes much easier to mitigate such risk.

While other platforms may simply examine financial statements for existing or prospective tenants, Megalytics analyzes the long-term prospects of an industry, including whether revenue is increasing or declining faster than average for that industry. With this type of technology, it is hoped that property managers and owners will be able to avoid renting space to tenants that might not be able to survive until the expiration of the lease term. Users can even drill data down to review startup and failure rates for similar businesses within the same neighborhood or region, thus giving them an idea regarding what they can expect in terms of success rates.

The Background Behind Megalytics

ElmSpring functions as a tech firm accelerator focusing on real estate. The round recently completed by Megalytics was the second such three-month boot camp held by the accelerator. Companies participating in the boot camp make their way through a series of networking and educational opportunities. Following completion of the program, participating companies are also given the chance to participate in a pitch day for investors, during which participants are presented with further opportunities for funding.

Megalytics, which is now a year old, is also set to complete its second round of funding in the next few weeks. At the same time, the firm will be rolling out its platform to more clients.