Tips and insights for how investors can navigate markets and plan for the future in times of uncertainty.
While we are still learning the magnitude of COVID-19’s economic impact, we do know that the directional impact is undoubtedly negative. While we manage the day-to-day of life in a pandemic, under stress of increasing unemployment, personal isolation and an unprecedented health crisis, we are starting the daunting task of estimating the long term economic fallout that could stem from the global shut down.
The COVID-19 impact will push commercial property transaction activity back to levels not seen since 2015 for transaction count and 2012 for transaction volume. These estimates suggest that COVID-19 will cost the commercial property market 25 thousand transactions and $100 billion in deal volume.
Estimating the impact of COVID-19 on private commercial property markets is a challenge experts are beginning to take on. Commercial real estate professionals can take it upon themselves to navigate these times with data as well. With increased time spent on research and analysis of historical patterns, professionals are building out deal pipelines, returning to relationship building, and creating risk-informed plans for navigating the crisis.
Staying informed with Historical Analysis
Commercial brokers, investors, lenders and service providers alike are turning to data and historical patterns to inform their market strategies in 2020 & beyond. By looking back at past recessions, tracking property trends and diving into market analytics, professionals are identifying areas of opportunity and creating a better understanding of their own potential risk. Reonomy is in a unique position to facilitate the exchange of information and to guide us through these uncertain times.
Reonomy’s mission is to make property intelligence accessible for everyone, from the individual investor to the world’s largest enterprises. At our core is proprietary technology that synchronizes information from across a multitude of sources into a single, reliable platform.
In light of current events, we shifted our focus to data-backed thought leadership that leverages our vast dataset and property intelligence. Reonomy Research provides accessible, macro-level insights on commercial real estate trends, allowing you to keep a pulse on market trends.
The Off-Market Opportunity
By leveraging a more nuanced approach to prospecting and research, CRE teams can have a much better pulse on where opportunity lies in the market. A major aspect of any approach should include leveraging off-market data. You can continue to have success with your commercial real estate prospecting efforts by better understanding the world of properties that exist, not just the ones listed for sale. Some key tips for leveraging data in our current market include:
- Using your downtime to dive into deep levels of research.
- Taking time to understand nuance and eliminate the “unknowns.”
- Carefully prioritizing your research and outreach strategy.
Prospecting with Reonomy allows you to find ideal clients and properties based on very granular property-level, financial, and ownership details, or simply inform your forward looking strategies based on qualitative research and strong market understanding.
Other sources limit your market understanding to listings, but with a renewed focus on off-market property understanding, professionals are getting ahead of their long term impacts with in depth analysis and a plan based on data for moving forward.
Property Centric to Market Level Analysis
When dealing with times of uncertainty, the best way to arm yourself to find the right path forward is to increase your knowledge of potential outcomes, so you can plan for any potential outcome. Data access combined with property and market level research can help you better understand your current market stance, the risks you are taking on, and where you may be able to make key strategic decisions down the road.
As CRE professionals continue to navigate key business decisions during these uncertain times, our reliance on past property performance, market analytics in times of downturn, and data-based risk analysis are all helping to make decisions with confidence. So whether you are looking to sell, buy, identify opportunities or address market concerns for your clients and partners, data can keep you informed, in the loop, and at the top of your game.
Don’t be shy about giving Reonomy a try and speaking with their team!
Source: “Finding A Path Forward with CRE Data”