How does a family office use data to find commercial real estate investments?
Short answer: The office says embedded data can help it assess the profitability of individual sites. It hired more data analysts and data scientists than property managers, and says it has more deal pipeline than capital.
The speaker on embedded data
At 5:36, the speaker says embedded data is becoming as important as conventional measures such as rent per square foot, demographics and traffic counts. At 6:06, he names cell phone data, visitor counts and sales estimates as examples. (at 5:36)
The office's three property sectors
The speaker says the office focuses on retail, medical office and industrial properties, where he sees an embedded data analytics opportunity that is not widely known among investors. (at 6:06)
The office's analytics team
The speaker says the firm started hiring more data analysts and data scientists than property managers. (at 5:36)
Using data to assess site profitability
The speaker describes the firm as a data analytics company with a commercial real estate use case. He says the office uses data analytics to understand the profitability of individual sites. (at 8:29)
"we started hiring more data analysts and more data scientists than we had property managers"
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Igor Olenicoff: Learn the business from the ground up. A job at a builders hardware store taught Olenicoff about building materials and techniques. It also built an affinity for real estate.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
- Michael Lee-Chin: Find the person who is responsible. When a problem comes up, he asks who the agent was. He wants a specific person to call, not a department.
See the data
Frequently asked questions
How does a family office use data to find commercial real estate investments?
The office says embedded data can help it assess the profitability of individual sites. It hired more data analysts and data scientists than property managers, and says it has more deal pipeline than capital.
What does the speaker say makes this data hard to use?
He says the data can be difficult to aggregate, organize and analyze. He also says conventional finance and commercial real estate have made little use of it.
What does the office say it needs for these deals?
The speaker says the firm is looking for advisers in technology and finance, as well as capital investors. He says it has more deal pipeline than capital for those deals.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.