Clarifying CRE Through More Connected Data

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Sponsored by Reonomy

If there’s one thing we’ve learned in 7+ years of business, it’s that the way information is recorded on commercial properties and owners is a disservice to the prospecting efforts of investors, developers, and brokers across the United States.

With more than 50 million properties, valued at roughly $6 trillion in total, U.S. commercial real estate is a massive and complex industry with incredibly high stakes. Opportunity is aplenty, but requires a great deal of data to recognize. Unfortunately, data solutions have long been one of the industry’s biggest fallbacks.

The industry problem: There’s no standardized approach for recording information at federal, state, and county levels, nor is there any intercommunication between these recorders to ensure consistency across the board. The data needed for strategic decision-making and prospecting can be fragmented, disparate, and unclear.

Manually resolving this issue requires a lot of time, and limits the level of knowledge and confidence your team could operate with on a regular basis.

Reonomy has set out to reset the industry’s expectations of data clarity.

Reonomy’s Impact on CRE Data

Reonomy collects data across the country from the sources CRE teams would typically reference to piece together information on their own (i.e. public records)—then blends that with troves of private data on people, companies, tenants, and more.

While the amount of information absorbed is certainly profound, Reonomy’s true impact to CRE data lies in connectivity. Through machine learning algorithms and technology, Reonomy fuses property, people, and company data together in a way that allows investors and other CRE professionals to make better sense of the core connections between different LLCs, owners, and their assets.

For example, let’s say your investment firm has an eye on two properties: 123 Main Street, and 789 10th Avenue. Separately, your team finds that John Doe is a managing member of the LLC that owns 123 Main Street, and that Bob Smith is a part of the LLC that owns 789 10th Avenue.

Because of the way property records are logged, your internal database would not allow you to derive any tangential context, or see any connections between John and Bob. You’d have an incomplete view of the opportunity at-hand.

Your database might overlook opportunistic insights, looking something like this:

What you’d miss is that John Doe and Bob Smith are both a part of Company 1—which is not only tied to your two targets, but also has other holdings in the market. Not only would this change the scale of the opportunity available to you, it may also shift how you decide to approach John, Bob, and Company 1.

The fact is, truly great prospecting requires nuanced data.

Behind every LLC, there are real people. Those people might be involved in additional LLCs. Those additional LLCs consist of more stakeholders, all of whom are associated with other LLCs and commercial asset holdings.

Reonomy’s solutions tie these different pieces of data together, connecting information across different companies and property holdings to give a more contextualized view of prospects.

Those data connections also open up the door to other valuable insights, helping your internal database look more like this:

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The Devil Deal is in the Detail

Identifying large-scale, long-term opportunities often lies “in the detail.”

Reonomy’s network of connected data unlocks nuances that enable your team to better understand the market and know which prospects to prioritize. By diving into sales, debt, tenancy, ownership, and more, you’ll be able to validate previous findings, while subsequently following data trails to additional opportunities.

1. Better Contextualize Opportunities

When analyzing a property with Reonomy, you’ll be able to see the stakeholders attached to an asset, identify who the decision makers are, and penetrate LLCs to see true owners and their contact information.

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In following a trail of data, a single asset could turn into a much bigger portfolio deal. With contact information across all of those properties, the data may reveal multiple relevant owners and brokers you can form lasting relationships with.

2. Mitigate Risk

Put simply, the more context you have on a property, the better you can assess its risk and reward with confidence.

Reonomy’s data network also includes layers of sales, mortgage, tenant, and other financial and property details used in the prospecting process, providing a more holistic view of any asset or portfolio.

3. Identify the Market’s Power Players

With layered portfolio data, you’ll be able to see who has skin in the game in any U.S. market and size the extent of their holdings. Whether you’re looking to make movements locally or in a new market altogether, Reonomy enables you to assess who the power players are.

In the end, for companies to grow in a continuously shifting CRE landscape, they’ll always have to utilize and adapt to data and new technologies. Reonomy continues to adapt as well, learning and growing to ensure that powerful data solutions are always available to those in the industry.

To read more about leveraging data to get more out of prospecting in the modern CRE landscape, download Reonomy’s Modern Playbook for CRE Business Development.

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