Amid the Pandemic Real-Time Data Becomes Key to Many CRE Decisions

Real time data is fast becoming not only a key tool CRE is using to fight the pandemic but it is also causing the industry to realize it is essential for ordinary tasks as well. One of the silver linings of the pandemic has been that it is turning out to be a catalyst for its widespread use, JLL  posits in a new post. 

“From analyzing rent-collection rates, to monitoring crowds in malls and understanding space utilization in offices, the pandemic has prompted more property industry players to use proptech to deliver real-time data outputs,” according to the post.

“High-frequency data in particular is in demand to help make decisions—especially relating to health, mobility and space usage.” 

Such information helps a variety of stakeholders, according to Matthew McAuley, director in global research at JLL. Data helps landlords see how they sit among their peers while investors can learn nuances about pricing and strategic implications.

Since the pandemic, data is being compiled by a number of sources. The National Multifamily Housing Council and the National Association of Real Estate Investment Trusts started pooling data on rent payment rates from property owners within a few weeks of the public health crisis escalating, JLL noted. “This provided visibility into a previously opaque indicator of a residential asset’s financial health and has informed both policymakers and businesses through the pandemic.”

JLL also points to Placer.ai—a retail analytics platform that uses machine learning—which has made its footfall data available to show year-on-year traffic fluctuations to major brands.

Other observers have made note of this trend as well. In the multifamily sector, for example, many property management companies are going beyond rent comp data and looking to lease transaction information.

“The main takeaway from the rent comp data is that it will always have a place in the industry, but, call-arounds and websites are no longer enough today,” declared Natalie Long, manager of Client Success for Market Analytics at the Texas-based RealPage. “Now, our PMCs need more timely and accurate data based on executed leases (what residents sign the lease for) so they can minimize their risk.” 

By combining rent comp reports and lease transactions data, she continued, “you start to get a complete picture that is really very powerful.”

“High-quality information that reflects fast-changing market conditions is invaluable during periods of market turmoil and many data providers covering niche property types have illuminated otherwise opaque market metrics,” Jeremy Kelly, lead director, global research, JLL said in the post. 

“These innovative efforts, organized in reaction to the market disruption resulting from COVID-19 highlight how transparency progress is possible when it is made a priority.”