Blog 1 of 4 in the 'How to Build a Data-Driven CRE Company' Series.
COVID-19 has been one of the greatest challenges the commercial real estate industry has ever faced – no question about it. Now, in the wake of COVID-19, recovery and risk reduction is paramount. What can you do to accelerate recovery for your firm? How can you use the pandemic as an opportunity to take your portfolio to the next level?
Think back to the beginning of 2020. CRE firms were already feeling the pressure to use data to adapt their business to evolving markets. And then, COVID-19 made landing, and suddenly, the pressure to use data to adapt turned into a need for survival.
This shift from legacy CRE firms to companies that harness the power of technology is not expected to be a temporary change only to fizzle out in the coming years. This shift is expected to permanently transform the commercial real estate industry as we know.
This presents an incredible opportunity for your CRE firm. While it is true that companies that refuse to adapt to evolving markets will follow in the footsteps of videotape stores and brick & mortar retail giants, those companies that embrace digital transformation can position themselves to be at the forefront of industry evolution with the likes of e-commerce websites and streaming services.
By implementing a data strategy and leveraging the tools readily available to you, your company can navigate these changing waters and come out in better shape than ever before. Data technology can allow you to effortlessly collect, process, and analyze your data giving you a better understanding of current portfolio performance, benchmarks, and future modeling. Modern technology can even allow you to assess current market volatility, model forecasts for potential impacts on future investments, and evaluate your portfolio's exposure to risk. These insights are critical for you to make powerful decisions for your properties, your portfolio, and your investments in the wake of COVID-19.