Business Intelligence for Real Estate Investments

Intelligent data and the benefits for REITs

With some institutional investors being involved in more than a hundred separate advisory relationships it has become impractical for them to receive and validate information manually. Business Intelligence tools will not only enable effective aggregation of data for internal portfolio management but will also provide a platform for the automated distribution of information to investors. Accurate assessment of trends and analytics in their portfolios ensures they make effective decisions that maximize investment returns. The key to portfolio optimization is data transparency, which is achieved through a business intelligence strategy.

To-date, REITs averaged a return of about 7.5% yield annually.

With large data volumes, reports and analytics that take seconds to run when a data warehouse is leveraged can take minutes or even hours to run directly from the property management and accounting system. Selecting the perfect business intelligence platform that meets the needs of a commercial real estate organization is imperative

Predictive Analytics

Recent reports show that the Gearing Ratio of REITs has reduced from 35.0% to 34.8%.

It is all about getting a hold of the data, filtering it and looking at the results to fit your needs and what they should look like in the future.

IDENTIFYING TRENDS

Predictive analytics can provide potential real estate investors with a number of benefits. Investors are quickly able to determine worthy investments, neighbourhood forecasting and predictive maintenance which all make a more informed investor and a higher marketing return on future investments.

BUYING BEST PROPERTIES

Investors want to get the most from their money so if there seems to be a growing demand for rentals by young families; an investor will not need to purchase a huge investment property to target the young family. A two-bedroom home will be more than enough for the targeted tenants.

By using such analytics, an investor is defining the sought-after home attributes that are in demand, which will get the investor the most return on the investment.

TARGETING TENANTS

When using such analytics, the real estate investor will be able to determine the makeup of the target tenant and how it will change in the upcoming years. Will there be a consistent flow of people looking to rent in the neighborhood?

Will these future tenants be the same in 5 years as they are today or will the composition of the tenant completely change?