Analyzing data trends is essential for businesses everywhere. Data-driven approaches provide concrete insights upon which key decisions can be made, enabling more accurate investments and company policies. The commercial real estate (CRE) industry is no exception, and analytics tools will only be more crucial for the space in the new year.
Data solutions such as a commercial real estate data platform that supports predictive analytics tools and streamlined data processes will help firms manage risks and better serve their customers and employees.
In their 2022 Commercial Real Estate Outlook, Deloitte asked industry professionals across the United States which technologies they plan on making large investments in for the next 12 to 18 months. 36% of those surveyed said they plan to invest in cloud computing in storage, 29% said blockchain, and 22% said data analytics.
With CRE firms prioritizing digitization in the new year, let’s dive into the latest industry trends to find out the data market is performing and why.
Forecasting Future Trends
The adoption of predictive analytics solutions is poised to increase astronomically in the new year and beyond: the global predictive analytics market is growing at a CAGR of around 24.5% and is expected to reach $22.1 billion by the end of 2026.
So what are predictive analytics? These data solutions forecast possible future outcomes while also identifying the likelihood of these events happening. Why should organizations care about these tools? They help companies “plan more effectively, set more realistic goals, and avoid unnecessary risk,” as Sigma Computing explained.
Better yet, these tools also allow teams to more accurately anticipate future outcomes based on all factors: “When business teams are able to conduct rapid, iterative analysis to evaluate options, they’re empowered to make better decisions faster.”
For landlords and property teams, data tools like these can provide valuable insight into key trends across portfolios, and inform important investment decisions down the line.
Creating a “Culture of Analytics”
Ashley Kramer, Chief Product and Marketing Officer at Sisense, recently reported on the trends defining data in the new year: “In 2022, organisations will redefine what it means to build a ‘culture of analytics’ and change the paradigm by bringing insights to workers in a more digestible way – turning to methods and solutions like embedded analytics that won’t require them to learn new skills or invest additional time.”
This “culture of analytics” that she refers to means that more and more organizations will focus on delivering insights to employees directly, rather than requiring them to get acquainted with entirely new data platforms.
This prediction is particularly relevant for property teams as they continue to provide a great experience for tenants and their employees in the new year. As more and more CRE companies adopt proptech solutions, the roles of property managers have gotten more complex than ever. Having a data and analytics platform will help make property teams’ jobs easier by informing their investments, increasing financial opportunities, and attracting and retaining tenants and employees all from a single location.
Utilizing a Real Estate Data Platform
Smart building software will also help CRE companies unlock additional sources of revenue and ensure that their portfolios are ahead of the game and optimized for innovation in the new year.
Not sure where to start? Landlords should thoroughly assess how their spaces are being used through data and analytics tools, and then “build capabilities that offer tenants plug-and-play properties.” A commercial real estate data platform, along with smart building solutions, will help teams in this process.
To learn more about the possibilities of data analytics through our end-to-end workplace experience platform, schedule your free consultation today.