Large and small commercial real estate companies throughout Texas have traditionally guarded their internal data as a company asset. The industry has been slow to partner with data analytic companies because early experiments resulted in firms losing control of their data. Some real estate firms tried sharing their data with companies that would collect and curate data, but they then watched their data get repackaged into new products and sold to anybody.
Despite this imperfect beginning, real estate industry professionals are beginning to see the value that data analysis providers can bring to the table. Brokers, lenders and developers could benefit from information about rents, prices and deals that has been refined by data analytic companies. Tools like machine learning and algorithms can pull valuable insights out of raw data.
The founder and CEO of Reonomy said that quality market information allows decision makers to spot trends and opportunities without spending a lot of time on sorting through data themselves. The president of Real Capital Analytics said that computers, when given data, do a better and faster job of filtering out bad information.
Quality insights about a market allow investors to make informed decisions about buying or selling. Information also matters when assigning a value to a property when buying, selling or leasing it. An attorney could help a client consider important variables when negotiating a commercial lease or purchase agreement. With the representation of an attorney, a client could potentially gain more favorable terms through negotiations. Documents like letters of understanding, amendments and extensions could be drafted by the attorney to contain language that protects the client’s interests.