In the ever-evolving world of commercial real estate (CRE), staying ahead of the competition means embracing new tools and strategies to optimize operations and maximize profits. One such tool is data analytics. With the vast amounts of data generated by commercial properties daily, understanding and interpreting this data can be a game-changer in decision-making and overall profitability. But just how is data analytics used in commercial real estate? 

Property management software, for one, is transforming the CRE industry by leveraging the power of data analytics. Backed by the best property management software, CRE teams can cut down building operations costs and leverage data to increase profitability. 

Technology adoption in commercial real estate: Insights from an expert at RETCON 2023

Technology adoption in commercial real estate: Insights from an expert at RETCON 2023

Jeff Thompson, Head of Global PM Technology Product Management, spoke at RETCON 2023 for his session, The Evolving Workplace Requires a Modern Tech Stack. Here are the most important takeaways.

How is data analytics used in commercial real estate?  

Data analytics has become an essential part of modern business strategies across various industries, and commercial real estate is no exception. How is data analytics used in commercial real estate? 

The ability to collect, analyze, and extract valuable insights from data enables commercial property owners and operators to make more informed decisions and unlock new opportunities.  

Some of the key benefits of data analytics in commercial real estate include: 

  • Improved decision-making: By analyzing historical data, market trends, and property performance metrics, CRE professionals can make more informed decisions about investments, property management, and tenant relations. 
  • Enhanced operational efficiency: Data-driven insights can help identify inefficiencies in property management processes, leading to cost reductions and increased revenue generation. 
  • Accurate property valuations: Advanced data analytics techniques can provide more accurate and reliable property valuations, enabling property owners to make better-informed decisions regarding acquisitions, dispositions, and financing. 
  • Increased tenant satisfaction: By better understanding tenant preferences and behaviors, property managers can tailor their offerings and services to meet the unique needs of their tenants, leading to higher retention rates and increased tenant satisfaction. 
What tech investments are commercial office property teams making this year?

What tech investments are commercial office property teams making this year?

As inflation remains unstable and the world braces itself for a potential recession, CRE teams need more help than ever before. Proptech is one area commercial office property teams will need to invest in this year to remain profitable.

Property management software and data analytics 

Property management software has evolved significantly over the years, and modern solutions offer powerful data analytics capabilities. These platforms can gather and process vast amounts of data from various sources, such as property performance metrics, energy consumption data, and tenant behavior patterns, providing commercial property owners with valuable insights that can be used to optimize operations and maximize profitability. 

Some key ways property management software can leverage data analytics include: 

  • Performance benchmarking: Property management software can analyze historical and real-time data to benchmark property performance against industry standards, helping property owners identify areas for improvement and implement targeted strategies to enhance their portfolio’s performance. 
  • Predictive maintenance: By analyzing patterns in equipment usage and performance, property management software can predict when maintenance or repairs are needed, allowing property managers to schedule proactive maintenance and avoid costly downtime. 
  • Energy management: Property management software can monitor and analyze energy consumption data to identify inefficiencies and recommend energy-saving measures, resulting in reduced operating costs and a smaller environmental footprint. 
  • Tenant analytics: By collecting and analyzing data on tenant preferences, behaviors, and satisfaction levels, property management software can help property managers better understand their tenants’ needs. CRE teams can then tailor their services accordingly, leading to increased tenant retention and higher occupancy rates. 

Future trends in data-driven property management 

The use of data analytics in commercial real estate is expected to continue growing as property management software becomes more sophisticated and the volume of available data increases.  

Here are a few trends to watch in the coming years: 

AI and machine learning 

As artificial intelligence (AI) and machine learning technologies continue to advance, property management software will be able to process and analyze even larger datasets, providing more accurate insights and predictions. This will enable property managers to make even more informed decisions and further optimize their operations. 

Integration with IoT devices  

The number of CRE property teams planning to invest in smart buildings/IoT increased 53% this year, according to a recent survey. 

That’s for good reason. The Internet of Things (IoT) is revolutionizing the way commercial properties are managed by providing real-time data on various aspects of building operations. As property management software integrates with IoT devices, the amount of data available for analysis will increase exponentially, leading to even more powerful insights and data-driven strategies. 

Enhanced tenant experience through personalization 

As property management software becomes more advanced in its ability to collect and analyze tenant data, property managers will be able to create even more personalized options to enhance the tenant experience. By tailoring services, amenities, and communication to each tenant’s unique needs and preferences, CRE property teams can further enhance tenant satisfaction and loyalty. 

Data-driven marketing and leasing strategies 

With the integration of data analytics in property management software, CRE professionals will be better equipped to target their marketing and leasing efforts. By analyzing tenant demographics, preferences, and industry trends, property owners can create targeted marketing campaigns and leasing strategies that resonate with potential tenants and drive higher occupancy rates. 

Cybersecurity and data privacy 

As commercial property owners increasingly rely on data analytics and digital tools, ensuring the security and privacy of the collected data will become paramount. Property management software providers will need to prioritize robust cybersecurity measures and adhere to stringent data privacy regulations to protect both property owners and tenants. That means they’ll need to thoroughly vet any property management software vendors they work with to ensure cybersecurity and data privacy are robust. 

Property management trends & technologies for 2023

Property management trends & technologies for 2023

To shine light on what CRE property managers are focusing on as they face a rapidly changing industry, Building Engines partnered with BOMA to survey commercial property managers about the state of CRE building operations.

How to use data analytics at your properties 

The commercial real estate landscape is undergoing significant changes. Data analytics is playing a central role in the industry’s evolution. By leveraging the power of data analytics through property management software, CRE owners and operators can:  

  • make more informed decisions; 
  • optimize operations; and  
  • ultimately boost profitability. 

To stay ahead in this competitive market, it’s essential for CRE professionals to embrace data-driven strategies and invest in property management software that offers robust data analytics capabilities. Have you ever asked, “How is data analytics used in commercial real estate?” If so, reach out to an expert to learn more about how to implement data analytics into your strategy.