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Can data enhance commercial real estate?


As commercial property investment continues to rise, investors seek ways to increase efficiency. With the market seeing substantially high investment for 2015, receiving the right data in a timely manner is paramount.

In light of this, corporate property investment is becoming increasingly dependent on data analytics. The right property development software can ensure you have access to all the information you need, as soon as it is entered.

Corporate real estate investment increases

The first half of 2015 saw the highest level of capital invested since 2007.

Research by CBRE indicates that commercial property investment reached record highs for the first half of 2015. According to CBRE's latest Global Capital Markets report, the first six months of 2015 saw US$407 billion invested globally, a 14 per cent rise from the first half of the previous year. This is the highest level of capital invested since 2007.

Regions experienced different levels of growth but all saw an increase, with CBRE noting that commercial real estate is likely to increase for the rest of the year and through to 2016.

The nations with the most profitable commercial real estate markets are the US, the UK and Germany. All together, US$301 billion was invested in these three countries, which CBRE notes represents 74 per cent of the total global market. 

In order to capitalise on the commercial real estate market, investors are turning to programs that can boost efficiency. 

Global property firm JLL note the addition of data analytics to truly understand property feasibility. According to its latest report, more commercial real estate investors are using technology to gain a competitive edge.

"CRE [corporate real estate] teams must become more adept at using data and analytics to fully capture, understand and interpret the information within their own real estate portfolios," says JLL's CEO of Corporate Solutions (Americas) John Forrest. 

Currently, 28 per cent of commercial real estate executives defined their firms as "data-centric" in JLL's research. However, more than half (56 per cent) indicated that this would be the case within the next three years. 

There are various benefits to using property development programs to evaluate investments. One advantage is real-time analysis.

Commercial property investment continues to rise.Commercial property investment continues to rise.

What is real-time analysis?

Real-time data analytics refers to technology that accesses and processes data instantaneously, reducing the time and money required to make decisions. Software with this feature maximises speed and accuracy, allowing employees to react quicker to information.

According to the latest report by Frost & Sullivan, the real-time data analytics industry is set up well for the future. The analysis revealed that the industry earned $742.8 million in revenue in 2014 and is expected to earn a further $4280.1 million by 2021.

Due to the nature of commercial real estate, immediate information can substantially alter a return on an investment. Ensuring you have accurate information as quickly as possible is paramount to competing on a global scale.

As evident by CBRE estimates, investment in commercial property is likely to continue to increase. Having an accurate property development plan can help facilitate a high return on your capital.

Date Published: 02 Dec 2015
Category: General News

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