Big Data: How Big an Impact for REITs?
October 19, 2016 | by Stuart Eisenberg | CREIOnline
Big Data is big-time ubiquitous in headlines across industries, but the real estate industry has been slow to take advantage of it. That’s all changing. Commercial real estate companies and REITs are embracing new technologies to harness the power of Big Data, elevating their investment and management strategies and optimizing their operations.
When we talk about “Big Data,” we mean the exponential growth in volume, variety and velocity of structured and unstructured data. That data, however, is only as useful as our ability to interpret it—an ongoing challenge for every organization. But in recent years, advanced analytics and powerful business intelligence technologies have enabled us to extract real value from Big Data. And it’s about time—because Big Data is only getting bigger. Embedded sensor technology and wireless connectivity have opened up a whole new world of information: the so-called “Internet of Things.” In real estate, as in most industries, knowledge is power; those who not only have the information but know how to use it are empowered to make smarter decisions, faster.
Of course, all investment decisions ultimately hinge on investors’ future predictions. But there are several significant ways real estate developers and owners (REITs included) can gain an edge by turning Big Data into actionable insights.
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