Effective data-driven decision making lies in having access to the right resources. The right resources make all the difference. When it comes to maximizing insights for commercial real estate owners and outcome owners, the question is,
“How do we aggregate historical project data to make smarter decisions going forward?"
Commercial real estate owners and project outcome owners bear the greatest risks in capital deployment. No matter who else is involved, general contractors, architects, engineers, tradesmen, it falls to owners to be accountable. Technology-enabled owners have greater leverage to make better-informed decisions in less time. It is the tech that allows them not only to access past data, but to share it, filter it, and draw informed conclusions. Teams lacking the technology that aggregates insights from across projects, buildings, and across the portfolio, have no more transparency than a black box.
Can You Access Usable Data?
Data has been described as the new mission-critical business currency. According to an interview with Intel CEO Brian Krzanich in 2018,
“Oil changed the world in the 1900s. It drove cars, it drove the whole chemical industry...Data, I look at it as the new oil. It’s going to change most industries across the board.”
Data, e.g., facts, information, and statistics, has always driven decision making within commercial real estate. Stored in the minds of subject matter experts, binders, or more recently in spreadsheets, it sat, mostly inaccessible, until somebody needed it. Except for monthly, quarterly, or annual reporting, it might never be remembered at all. It has always had value, even when much of it remained underutilized, or untapped.
What Could Owners Accomplish with Accessible Data?
Unifying project data would level the playing field for owners, giving them the kind of market intelligence usually available only to contractors. Armed with this information, they’d be better informed about:
- Pricing, by region, square foot, project specifications, etc.
- Forecasting timelines based upon their historical data.
- Projecting budgets based upon similar projects, previous vendors, etc.
- Measuring and tracking project budgets across the portfolio against underwriting projections.
Having accessible, aggregated data to answer these questions allows owners to reduce contingencies, validate and improve the underwriting of new assets, and deliver greater value to investors.
According to McKinsey & Company,
Many real estate firms have long made decisions based on a combination of intuition and traditional, retrospective data. Today, a host of new variables make it possible to paint more vivid pictures of a location’s future risks and opportunities.
To remain competitive, technology is key in leveraging the vast amounts of data owners amass throughout an asset’s lifecycle. Further leveling the playing field is that owners of various size all benefit from accessible data to build projections, and enhance their capacity to compete in their markets.
Commercial real estate owners who control and leverage accessible data to drive decision-making will outperform and outlast their competition.