Nov 17, 2023
By Amy Tanzillo

Tips to Improve Your Real Estate Strategy Using Data 

In today’s fast-paced business world, collecting the right data is more critical than ever for maximizing your corporate real estate portfolio. By leveraging key data points, organizations can gain valuable insights and make informed decisions to optimize their real estate assets. Read on to understand the importance of capturing the right data, establishing data standards, maintaining data integrity, and conducting regular data reviews.

Key Data Points: Understanding the Full Scope

  • Market Data: Understanding current market conditions, including rental rates, property values, and vacancy rates, is essential for making informed real estate decisions. Market data provides insights into the overall health of the real estate market, allowing organizations to identify opportunities, negotiate favorable lease terms, and evaluate the competitiveness of their portfolio.
  • Occupancy Rates: Monitoring occupancy rates is crucial for optimizing space utilization and identifying opportunities for consolidation or expansion. By analyzing occupancy rates across different properties, floors, or departments, organizations can determine the most efficient use of space, reduce unnecessary leasing costs, and improve overall operational efficiency.
  • Lease Expiry Dates: Having accurate and up-to-date information on lease expiry dates helps organizations proactively manage lease negotiations, renewals, or relocations. By closely monitoring lease expiry dates, organizations can avoid potential disruptions, evaluate market options, and negotiate favorable terms based on the current market conditions.
  • Energy Usage: Energy consumption is a significant cost factor in corporate real estate. Collecting data on energy usage enables organizations to identify inefficiencies, track energy-saving initiatives, and optimize energy consumption. By analyzing energy usage patterns and benchmarking against industry standards, companies can implement energy-efficient practices, reduce carbon emissions, and achieve cost savings.
  • Maintenance Costs: Tracking maintenance costs is essential for optimizing facility management and asset performance. By capturing data on maintenance activities, costs, and asset lifecycles, organizations can identify trends, predict maintenance needs, and allocate resources efficiently. This proactive approach minimizes downtime, extends asset lifespan, and reduces overall maintenance expenses.

Data Collection Defining Consistent Methodology

Organizations should establish robust data collection methods, utilizing various sources, such as internal systems, IoT devices, sensors, and external market data providers. It is important to define data collection processes, ensure data accuracy through validation methods, and maintain data security and privacy.

Data Standards: Staying Consistent and Accurate

Adhering to data standards, such as those set by organizations like the Building Owners and Managers Association (BOMA), is essential for ensuring consistency and accuracy across different data sources. Data standards establish common frameworks, terminology, and measurement practices that enable organizations to compare and analyze data from multiple sources accurately. Consistent data standards facilitate benchmarking, performance analysis, and effective decision-making while avoiding compliance fees.

Data Integrity: Preserving Quality

Organizations should implement data quality control measures, including data validation techniques, automated data checks, and periodic audits. By identifying and addressing data quality issues, organizations can have confidence in the integrity of their data, leading to more reliable and accurate decision-making.

Data Review: Ensuring Data is Up-to-Date and Relevant

Organizations should establish a systematic process for data review, including periodic evaluations, trend analysis, and data refresh cycles. By reviewing data regularly, organizations can identify emerging trends, adapt to changing market conditions, and make timely adjustments to their real estate strategy.

Using the right tools to make smarter data-driven decisions

Embracing data-driven practices empowers organizations to achieve operational efficiency, cost savings, and strategic growth in the ever-evolving corporate real estate goals. Leveraging an intelligent tool to collect, visualize, and analyze key data points from lease expiry dates to maintenance costs and more can help. An integrated workplace management system (IWMS) like Nuvolo consolidates data within a single solution with a transparent view across the business. Nuvolo’s Real Estate solutions centralize property details and incorporate data from other segments of your business—from space utilization to facilities maintenance and capital planning—to empower data-driven decision-making. Learn more about Nuvolo’s Connected Workplace.