They Know When We're Pregnant

Target knows when we'll get pregnant.  HP knows when we're about to quit our job. Pandora knows what new music we'd like to hear.  Yep, companies are mining data to predict what we'll do and when. As I'm sure you've heard, "big data" is a "big" thing.  While we in the commercial real estate industry haven't really witnessed its power I'm sure we will soon.  It will of course happen in the residential markets first because the capturing of relevant data has been going on much longer, and while most people only participate in a residential transaction once every 5-10 years, it's more often than for commercial property.  Plus, while brand or broker loyalty is weak in residential, it's stronger in the commercial markets making the equation of cost verse benefit better in the residential markets.

I find that people are in two camps on this topic  - those that think it's really creepy and those who see it as bringing powerful service.  In the commercial realm, it will likely happen first with large portfolios because of the homogeneous nature of the product and somewhat predicable life cycles for the assets in terms of holding periods as they relate to market changes. Having "big data" will assist in marketing because, as we all know timing is about as important as the product.  Predictive marketing is only one aspect of having the right data.  Automated analysis and predictive pricing is equally on the horizon in a big way and is as important if not more so.

Behavioral data is already pushing other industries forward. It's all about targeting and context and it's done by knowing more about the people you're talking to.  We're all being profiled all the time and a great article on how one reporter tested this is in this New York Times article.  Give it a quick read and if you're up for it, consider how data can both help and hurt the industry of commercial real estate as we know it.  Once you've started thinking about it, you can make plans.

So put on your turban and pull out your crystal ball and let me know what you think.  What's on the horizon for us?  Are you game for the changes and ready to incorporate them or is it so far off that you'll be retired before you can either take advantage of the benefit or shake your fist at the invasiveness?