Not only is real-time data becoming a key tool that CRE is using to fight the pandemic, but it is also prompting the industry to recognize that it is essential for normal tasks as well. One of the silver linings of the pandemic has been that it turns out to be a catalyst for its widespread use, JLL posits in a new post.
"From analyzing rental collection rates, to monitoring crowds in shopping malls, to understanding space usage in offices, the pandemic has led more real estate industry players to use proptech to deliver real-time data outputs," the post said.
“In particular, high-frequency data is required in order to be able to make decisions– –especially with regard to health, mobility and use of space. "
Such information helps a wide variety of stakeholders, said Matthew McAuley, director of global research at JLL. Data can help landlords see how they fare among their competitors, while investors can learn nuances about pricing and strategic implications.
Since the pandemic, data has been compiled from a number of sources. The National Multifamily Housing Council and the National Association of Real Estate Investment Trusts began pooling data on property owners' rent payments within weeks of the public health crisis escalating, JLL said. "This provided insight into a previously opaque indicator of the financial health of a home and has alerted policy makers and businesses alike to the pandemic."
JLL is also showing on Placer.ai– –A retail analytics platform that uses machine learning-Which has made its pedestrian data available to show the traffic fluctuations of major brands from last year.
Other observers have also taken note of this trend. For example, in the multi-family sector, many property management companies go beyond rental compensation data and look for information about leasing transactions.
"The Main extraction from the rental compensation data is that it will always have a place in the industry, but call-arounds and websites are no longer enough today. " said Natalie Long, Manager, Client Success for Market Analytics at RealPage in Texas. "Now our PMCs need more up-to-date and accurate data based on executed leases (which residents sign the lease for) so that they can minimize their risk."
By combining rental income reports and lease transaction data, she continued, "You get a complete picture that is really very powerful."
"Quality information reflecting rapidly changing market conditions is invaluable in times of market turmoil, and many data providers covering niche real estate have shed light on otherwise opaque market metrics," said Jeremy Kelly, lead director, global research, JLL in the Post.
"These innovative efforts, organized in response to the market disruption resulting from COVID-19, show how transparency advances can be made when made a priority."