How to Solve the Big 5 Data Challenges
There are challenges in using data that your company may be experiencing. Here is an interesting article from GlobeSt.com talking about challenges holding commercial real estate back…we have overcome these at Cresa.
When you work with Cresa, we
leverage your data into actionable business intelligence, offering a
consolidated, real-time view of your portfolio. With the ability to pull from
multiple data sources, we track important real estate and occupancy metrics
over time and display the data visually in easy-to-read dashboards.
Let our team of data analysts
help your company find the best strategic solution for your commercial real
estate needs. If I can help, please
visit www.tenant-broker.com to start
the conversation. I will represent your
interests 100% of the time!
How to Solve the 5 Big Data Challenges Holding CRE Back
Businesses are looking at how to better tap the potential
of big data and PropTech as data is becoming an indispensable aspect of
decision making in commercial real estate.
By Paul Bergeron | September 20, 2021
Leasing automation, centralized leasing departments,
providing customer service through bots, smart-home IoT devices and using
mapping technology to replace spreadsheets are among the forward steps the
apartment industry has been taking to handle data since the pandemic.
Yet many companies are facing challenges in gathering,
analyzing and using data. Oftentimes datasets provide an incomplete picture,
limiting the value of insights gleaned,
Without good data practices that result in high-quality data
and insights, companies are at a disadvantage when it comes to reducing costs,
preparing for risks and finding opportunities,” Michael Thompson, Head of BI
& Data Analytics, Americas, at JLL Technologies, said.
Here are some common hurdles that businesses are facing when
making the most of PropTech, according to JLL’s Transform with
Technology report. A few available solutions are included, too.
Outdated Systems
Many companies use legacy tools such as spreadsheets to
collate data, risking not only manual errors but also keeping other relevant
data separate. Such data silos often make it harder for teams to share and use
information, ultimately impacting the quality of insights.
“Quality of information and the completeness of datasets are
common problems,” says HoChun Ho, Head of Enterprise Data Governance at JLL.
“To embrace the Internet of Things, companies have to be able to process large
volumes of data, which requires machine learning and automation tools.”
Establishing a data governance policy – and hiring for data
governance skills – is key for employees to know how to collect and understand
data, and where to access it. “Data governance enables companies to know they
can trust their data,” Ho says.
Tools from companies such as Engrain are making data
processing and interpretation easier by displaying it more visually rather than
via a spreadsheet. Asset Intelligence, a technology provided by Engrain and
built on Unit Map, is an interactive mapping API that acts as a foundation for
other property technology. Unit Map is made available at no charge to any
property management company that wants to use it for their own dashboards or
within their other vendors’ products.
Asset Intelligence places data about pricing, apartment
units, floor plans and overall floors onto a visual map that helps leasing
staff and prospective residents get a visual presentation of data and important
trends. It’s designed to make the task more intuitive, easily understood and
efficient.
Limited Data Skills
A lack of staff with the right skills is a common limitation
in collecting and analyzing data efficiently.
For example, many companies use dashboard software that
assimilate and analyze all data collected across a company’s operations. But
employees often require training to get the most out of such tools.
“The practice of gathering and using data needs to be
integrated into workflows,” Thompson says. “While hiring data specialists
supports the shift towards more data-centric decision making, good data
practices rely on all employees being able to use data in their daily
work.”
Management companies such as Catalyst created its own
Catalyst Innovation Lab. It is focused on incubating, piloting and scaling
innovative solutions, tools and partnerships that drive operating margins,
building efficiencies and portfolio sustainability throughout the multifamily
sector. The lab comprises more than a dozen young companies.
Hiring for data analytics is also on the upswing. Crystal
Martin, Director of Operations, Leon Capital Group, said her company is seeking
analysts who can come in and aggregate the data and present it in actionable
ways on dashboards shared portfolio-wide with the team.
Inconsistent Standards
Companies in the midst of digitizing operations often have
varying processes for collecting data in different teams. This can result in
incompatible data formats, requiring time-consuming standardization that
stymies information sharing, analysis and adoption of the new technologies.
For businesses starting to invest in PropTech, the wide
array of IoT devices and vendors can also appear a minefield, with potential
incompatibility issues a barrier to further investment.
Some companies such as Madera Residential have created
proprietary IoT systems, using advancing technology that saves money and is
more reliable. Companies such as iApartments has developed an IoT system that
does not require a dedicated network, which also saves owners a great deal.
Complex Privacy Regulations
PropTech data, which provides insight into human behavior, is subject to data privacy regulations that differ between jurisdictions, from general data protection laws in Europe, Brazil or Singapore, to varying U.S. state privacy laws. For companies trying to comply with requirements in multiple countries, this can be a major roadblock.
“All these different technologies have to be able to support
increasingly strict privacy requirements, while different systems within a
company’s network may contain more private data that needs greater protection,”
Ho says.
Projects often stall because stakeholders are unsure about
compliance around data collection that would drive decision-making, adds
Thompson, highlighting the need to train – or hire – for expertise in data
privacy law.
Lack of a Holistic Data Strategy
With an expanding range of technologies that monitor
environmental, occupancy and operational data, integrating all these data
points can be a challenge. Fortunately, many newer property management
companies such as AppFolio and Knock are creating and refining their CRMs
(customer relationship management) platforms that simplify this process for
onsite staff.
Companies require a holistic strategy that defines every
data stream and how it interacts with other building data, says Thompson. “A
robust data strategy needs to define, check, organize and distribute data to
the places it needs to go,” he says.
By investing in datahub tools like dashboards that
assimilate information across different departments, and even with the office
space itself, companies can gain insights into how to improve every aspect of
their business.
“Every company needs to understand data to create their
competitive edge,” Ewert says. “Occupiers are now focused on how to enable the
right hybrid workplace, and investors on how to revamp existing buildings to
meet future demands. Good data empowers these decisions.”
Bot technology is helping to deliver unmistakably consistent
answers to apartment prospects’ questions, through pre-programmed, AI-driven
data that the bots use when interacting with a website visitor.
UDR has found that using virtual leasing assistants such as
ACE from LeaseHawk is a first step toward centralized leasing offices, which
are gaining some momentum in operations. It’s a component of “autonomous
leasing,” whereas the bots can handle many of the functions that previously
were the responsibility of onsite leasing staff from looking to leasing to
living.
If a prospect schedules a tour through the bot and takes it,
the bot can ask, “How would you rate your tour?” If it’s a 4 or higher on a
5-point scale, the bot can ask, “Would you like me to send you an application?”
Or, “Can we do a credit check with you?” This is on top of the bot already confirming
and reminding the leasing agent about the appointment.
End of Article
If you have significant questions about your current real estate strategy, it may be time for a discussion. Once we have started our conversation, we can create a strategy to look at your business operations and current space and then craft up a plan to find something that is a great fit in the area. With the current vacancies and inventory, we will work with you to get the best deal. We represent tenants ONLY, so you can feel comfortable that we are working for your business 100%. If we can help you by being your tenant broker in the DC, Maryland, or Northern Virginia area, visit my website or call me at 301-841-6542. Make sure to follow all my social efforts by clicking on the links below.
I specialize in providing comprehensive real estate services,
exclusively representing corporate tenants on all commercial real estate needs.
Commercial Tenant Broker
2 Bethesda Metro Center, Suite 900
Bethesda, MD 20814
301-842-6542
Comments
Post a Comment