At its heart, predictive analytics always uses historical data to predict a future event. The technology has transformed some industries, including finance, manufacturing, marketing, and healthcare. Recently, more people have found that they can use predictive analytics in commercial real estate to make smarter decisions that lead to increased revenues.
Predictive analytics can seem a little intimidating at first. Once you learn a bit about how the technology works, though, you will see why it makes sense for real estate professionals to adopt predictive analytics tools.
How Does Predictive Analytics Work in Commercial Real Estate?
Predictive analytics in commercial real estate helps you pinpoint off-market properties that owners will likely want to sell in the near future. When you know which properties will probably get listed within the next 12 months or so, you can concentrate your efforts on converting the best leads. While other real estate brokers and investors use a scattershot approach to finding sellers, you can work strategically to save time and money.
Using Historical Data to Predict the Future of Commercial Real Estate
When you take a broad view of the commercial real estate industry, you can see trends that suggest future outcomes. For example, when property owners miss loan payments, it becomes more likely that they will want to sell their properties to avoid financial repercussions.
Other events associated with upcoming real estate listings include:
- Changing real estate prices in the area
- Losing tenants
- Failing to meet regulations
As an individual, you can only spot basic trends. You can understand why losing tenants would encourage a property owner to sell. Some trends, however, are far too complex for humans to see. That’s where computers become helpful.
Software has the ability to analyze massive amounts of data and discover trends humans cannot see. With predictive analytics in commercial real estate, you glean more than superficial data points. You get deep insights that give you an advantage over competitors.
Predictive Analytics Evolves Over Time
The best predictive analytics tools adapt as they process more information. A correlation that worked two years ago might not help you as much today. As the industry evolves, your predictive analytics should change, too.
ProspectNow ensures you have information that pertains to recent trends. The platform uses machine learning and artificial intelligence. This combination makes it possible for the algorithm to learn from the data it collects. Maybe changing real estate prices won’t mean as much next year as they do now. Good predictive analytics continually processes historical and emerging data to reveal the latest trends.
Using Predictive Analytics in Commercial Real Estate
If you’re working in commercial real estate, predictive analytics can become an essential tool for generating leads and reaching clients before your competitors even know they exist.
You don’t have to wait for someone to list a property before you reach out to them about facilitating the deal. Instead, you can rely on ProspectNow’s predictive analytics to show you which properties will probably be listed within the next 12 months. Ideally, you will reach out to property owners before they have even decided to sell their real estate. By contacting them before other real estate professionals, you start a relationship that gives you a competitive advantage.
Generating Lead Lists With ProspectNow
If you prefer to work with specific types of commercial real estate, you can use ProspectNow’s filters to generate lead lists that match your interests. For example, you might narrow the off-market properties in your area to those with more than 10,000 square feet of space. Filtering makes it easier for you to find attractive leads without spending time reaching out to the owners of properties that don’t fit your portfolio.
ProspectNow has a video that shows you how to generate a lead list of residential property owners. The platform has a similar tool for commercial real estate. It works a little differently, but the video will give you a good idea of what to expect when you use ProspectNow’s predictive analytics in commercial real estate.
How Much Can Predictive Analytics Increase Your Revenues?
The big question is how much predictive analytics can increase your revenues. If it doesn’t give you a significant boost, it isn’t worth investing in.
The specific amount of money that you can make after adopting ProspectNow’s advanced predictive analytics differs according to several factors, such as your location, how much you usually spend on marketing, how many deals you close in a year, and the average value of your deals.
Use this ROI calculator to get an estimate of how much ProspectNow can help your business grow.
Success in commercial real estate still relies on knowing how to market your services and convert leads into clients. Predictive analytics can’t do your job for you. It can, however, give you an opportunity to focus your efforts on the most valuable leads in your area. Combining your expertise with the benefits of predictive analytics in commercial real estate could mean that you boost your revenues significantly while spending less time working.
Try ProspectNow to Experience the Power of Predictive Analytics
Experiencing the power of predictive analytics in commercial real estate is the best way to see how the technology can benefit your business. Of course, not all platforms offer the same results at reasonable prices. Those are reasons that ProspectNow stands out as your top option.
ProspectNow has been around for more than a decade (since 2008). The data users can get from ProspectNow is a lot more expensive on competing platforms. By using ProspectNow, you will close more deals, and, therefore, make more money! ProspectNow is a vital tool for business success in real estate and real estate marketing. Additionally, ProspectNow is trustworthy and easy to do business with, and a provider of reliable data.
Experience the benefits of predictive analytics in commercial real estate by starting a free trial with ProspectNow.