Tech advances are accelerating transactions for Chicago real estate pros
Pricing decisions also are increasingly informed by information technology, according to Annie Koch, director of operations at STREAM Capital Partners, which facilitates net-lease and sale-leaseback transactions.
“Cloud-based services are the standard and norm today to help establish and reinforce pricing,” Koch said. Her firm consults CoStar, LoopNet, Crexi and other sources for insight on sold properties, leased space and on-market property pricing, and maintains historical information in Apto on transactions her company has facilitated.
The depth of analytical data gets deeper every day, says Matt Jones, associate vice president of multifamily investments for Colliers International in Grand Rapids, Michigan.
“We’re not just talking population and demographics but information on the migration of people and businesses and capital, including what institutional players are doing and how they are allocating capital…who’s going where, what they are doing with their money when they get there,” Jones said. “The granularity of available data and the intelligence it provides is amazing.”
Another implication of the magnitude of available data, which is continually updated: landlords can set asking rents in real time based on market dynamics including the shifting balance of supply and demand.
Powerful as the data is, Koch says her firm relies on other forms of intelligence as well to help clients succeed. STREAM uses drone-based photography to see physical attributes of properties and to assess the proximity and condition of nearby sites and key infrastructure, be it another income property, residential, a highway or transit stop. Drone photography is easier and cheaper to obtain than traditional aerial photography.