Sponsored by Reonomy
As the commercial real estate market becomes more data-driven and digitally advanced, industry leaders are turning to technology to eliminate investment guesswork. While the world is abuzz with “Big Data,” there’s still uncertainty around how it can fuel predictive analysis… until now.
Reonomy harnesses big data and machine learning to enable investors, brokers and developers to identify assets likely to sell. With access to complete sales records, owner portfolios and debt-related data, professionals are armed with an arsenal of predictive insights to make better investment decisions. Combined with accurate owner contact information beyond the LLC, Reonomy users have everything they need to uncover available purchasing options and eventually, close more deals before the competition does.
Best-in-Class Data Aggregation
The underlying technology powering Reonomy’s platform is what helps investors, brokers and developers harness sales-related foresight. Using proprietary machine learning algorithms, Reonomy collects, cleanses and connects related property information on more than 50 million assets across the country.
The benefits from this are two-fold, with the first tying back to the “off-market” element. Off-market is comprised of the entire supply of properties, including unlisted, unmarketed assets, which drastically expand the realm of investment potential. This broadens the investment scope, so instead of solely targeting marketed listings that are already attracting competition, investors and brokers have a whole “secret” world of other options to explore.
Furthermore, each asset in Reonomy is also matched with its associated physical, transactional and ownership information. This allows users to access an ultrarich, 360-degree view of a single property, including all relevant structural, geographical, transactional and portfolio information. Using these insights CRE professionals are armed with a stronger understanding of an opportunity at stake to use in predictive analysis.
Transactional Insights Fuel Predictive Analysis
How, exactly, can investors and brokers make such accurate predictions? By analyzing granular property information, specifically a combination of sales data, mortgage data, holding periods and signs of distress, Reonomy users can determine whether or not commercial properties might be likely to sell.
Sales information, in particular, can point to potentially motivated owners. The Reonomy platform serves up a holistic transactional profile that includes a property’s total sales history, complete with recorded transaction dates, respective sales prices, and associated owning entities to predict the likelihood of a future sale.
Reonomy also allows professionals to access comprehensive debt-related insights that, when leveraged correctly, can accurately uncover signs of financial duress. Similar to transactional history, key indicators like upcoming maturation dates or large mortgage amounts, can empower data-backed decision-making. Users can even leverage pre-foreclosure cues, like current pre-foreclosure status and upcoming auction dates, to confirm signs of distress and point to more viable options.
Finally, just as every property in Reonomy is matched with its associated records, every owner is matched with their associated properties. Professionals can see any property, past or presently related, that’s part of an owners portfolio. With this data, investors, brokers, and developers can uncover patterns, like other recent portfolio sales or general financial distress, to predict if an owner would be interested in striking another deal. Overall, access to such thorough sales information, people and properties opens the doors to new sales.
Paint a Holistic Picture to Make Better Decisions
While not all properties are guaranteed to sell, understanding these key indicators can point to properties with a higher likelihood of selling than not. By performing due diligence and uncovering nuances, professionals can identify better opportunities.
For example, an investor analyzing warehouse opportunities can harness sales, debt and portfolio insights to make stronger conjectures about what’s likely-to-sell. Maybe they’re comparing two warehouses—the first was last sold in 2017 and has a mortgage maturation date 13 years down the line. The second, on the other hand, hasn’t been sold in the last ten years and has a maturation date that’s three months away. Out of these two options, the second would be a more promising pursuit. Considering the average holding period for commercial assets is 7-10 years and full installments are due shortly, the second warehouse is more likely to sell than the first.
Or, maybe they’ve found a third warehouse that’s caught their eye. It was sold five years ago and still has a few years before coming to terms on its loan. But, the investor interested noticed that the owner on record, ABC LLC, recently sold three other warehouses in the local area by accessing his portfolio information. Knowing that the warehouse’s owner has recently liquidated his other assets, the investor can infer he might be interested in selling. While it’s not guaranteed, a pattern of recent sales points to a more favorable outcome. Then, this investor could “pierce” ABC LLC to uncover actual contact names and information to reach out and pitch their offer.
At the end of the day, not every property owner will definitely be interested in selling their assets. But, with access to the largest off-market database in CRE, matched with corresponding insights on transactional and debt information, investors, brokers and developers are armed with the data to pinpoint who’s likely to sell next, way before the competition.
Find motivated sellers with a free trial of Reonomy today.