NEW YORK–In the real estate industry, Big Data continues to become an integral part of the investment and operational process. The use of technology to analyze and make sense of large data sets has never been stronger, CapStack Partners said in a statement.
“This is because quality of data directly impacts the quality of critical decision making, helping to mitigate risk. Accordingly, it’s no surprise that real estate companies are increasingly using technology to gain a competitive advantage,” the satatement said.
This trend has sparked a wave of innovative new software developed specifically for commercial real estate owners, operators and managers coming to market. Forbes contributor Omri Barzilay summarizes well the different technology startups that are changing the industry for the better. To capitalize on the strong institutional demand for these data solutions, industry behemoth CBRE is one firm among many that have been acquiring real estate tech companies.
“At CapStack, we have been early adopters of real estate technology to enhance the way we do business and service our clients. Having the power to easily sort through hundreds of pages of deal information and digest raw data provides us with a deeper understanding of market trends,” the statement said. “It also enables us to identify correlations, making us smarting by improving our due diligence and capital execution. More recently, we have employed technology to enhance and streamline our loan syndication services. As a result, we can now better analyze and package invaluable trade data that we can share with clients.”
Big data is quickly becoming a cost effective way of leveling the playing field between small and large scale investors, particularly in customer intensive sectors such as self-storage, hotel and restaurants. The institutional players are on the forefront of this adoption because incremental improvements to the top or bottom line tend to move the dial in a big way, especially for REITs that need to deliver quarter to quarter. Even in more traditional sectors of real estate investing, incremental and granular changes are beginning to speed up.
“While real estate remains very much a location business, it is by no means a local business anymore. More domestic and foreign investors are focusing on markets in which they have no prior history of transacting,” the statement said. “This is the result of easier and more convenient access to meaningful data on markets, asset classes, trades and behaviors. While there’s always room for the creative and the nimble in the real estate industry, with the growth of data sources and solutions, it makes it easier for players of any size to be well informed and to better execute.”
CapStack Partners is a specialty investment bank focusing on the real estate, hospitality, infrastructure and energy industries. Founded and led by capital markets expert David Blatt, CapStack provides a full range of investment banking services including project financing, private placements, mergers and acquisitions, loan syndications, workouts and dispositions, and strategic advisory.