Wholesale prices shot up 1.2 percent
last month. The Dow-Jones stock
market index fell 96 points yesterday. The average temperature of the Earth
rose by 0.74 degrees Celsius over the last
100 years. During the last five years, the
overall vacancy rate for commercial buildings in downtown Dallas has hovered
between 27 percent and 31 percent.
In this so-called “Information Age,” we
are bombarded by statistics, charts,
graphs and outright trivia almost every
moment of every day. But in order to take
full business advantage of this mountain of
information, we have to know how to
interpret it — especially in the real estate
market.
“Information has certainly become a
competitive advantage,” says Ariel D.
Guerrero, Assistant Vice President of
Transaction Services and Client Services
Manager for Texas based in Grubb & Ellis
Company’s Dallas office. “In today’s
volatile economy, commercial real estate
investors and asset managers must be able
to accurately assess trends, analyze their
portfolios and evaluate options to ensure
they make effective decisions that maximize investment returns on an ongoing
basis.”
Smart Business spoke to Guerrero
about how information plays a vital role in
making crucial real estate decisions.
What research is available, and how can it
be used as a competitive advantage?
Up-to-the-minute property, economic and
GIS mapping/demographic data can be
accessed from various subscription services, including Costar, Loopnet, Xceligent,
Catylist, REIS, Moody’s Economy.com,
Claritas and other research tools.
By integrating all these data sources and
utilizing proprietary reporting tools that
provide advanced analytics, informed
decisions can be made based on up-to-date information and their impact on
future returns. To remain competitive,
leading firms have been implementing
information management and analysis
tools that provide aggregated data as well
as automated distribution of information
to clients.
What can be gleaned from raw research
data?
Custom and published market reports
are produced highlighting and analyzing
the commercial real estate markets on a
quarterly basis. Within these reports, vital
information related to the health of the
markets is presented, including — but not
limited to — rental appreciation/depreciation, net absorption, current construction,
vacancy rates and any other information
that a client would need to assist real
estate decision-making.
What is digital marketing, and how does it
affect the quest for lucrative real estate
opportunities?
In the rush to close more deals expeditiously, technology has certainly played an
important role in streamlining the commercial real estate sales process. Digital
marketing has helped brokers realize efficiencies in cost as well as time. For example, most marketing materials for investment properties are most often condensed to property-centric Web sites and/or virtual online areas known as ‘war rooms’
where due diligence information can be
uploaded in a secure manner, which
allows users 24-7 access to the information they need to keep the transaction
moving. Brokers can use these services in
their marketing so they can truly stand out
from their competitors in this highly competitive industry.
How has the economy driven the demand for
proprietary information?
There seems to be an inverse relationship that exists between economic performance and the demand for information.
When things are going well, people are less
inclined to ask questions and dig deep.
The booming commercial real estate
market of years past caused a relative level
of complacency with regard to access to
critical market data. However, with the
credit crunch and slowing national economy, there is a sense of urgency that drives
a growing demand for reliable market
information.
What kinds of exclusive information are
available to qualified and experienced
agents but not to the general public?
Competent advisers utilize proprietary
research capabilities and analysis, extensive property databases and proven negotiation skills to create transaction opportunities that support their clients’ business
objectives.
In what ways can an adviser assist interested
parties with their decision-making?
An adviser can assist clients in their decision-making by applying real estate strategies to business imperatives: changes in
ownership, market shifts, changes in business focus or regulations, expansion/consolidation initiatives, and procurement or
outsourcing initiatives.
ARIEL D. GUERRERO is Assistant Vice President of Transaction Services and Client Services Manager for Texas in Grubb & Ellis
Company’s Dallas office. Reach him at (713) 599-5112 or [email protected].
