Presentation is loading. Please wait.

Presentation is loading. Please wait.

Real Estate Data: What Will the Future Behold? Mark R. Linne, MAI, SRAJack Huntress Rene Circ CEO/Chief Analytics OfficerManaging Director-Residential.

Similar presentations


Presentation on theme: "Real Estate Data: What Will the Future Behold? Mark R. Linne, MAI, SRAJack Huntress Rene Circ CEO/Chief Analytics OfficerManaging Director-Residential."— Presentation transcript:

1

2 Real Estate Data: What Will the Future Behold? Mark R. Linne, MAI, SRAJack Huntress Rene Circ CEO/Chief Analytics OfficerManaging Director-Residential Director of Research-Industrial ValueScape Analytics, Inc.Environmental Data Resources Property Portfolio Research

3 Some of Today’s Themes

4 The Appraiser of Tomorrow Jared Schlaes-1995 Two kinds of participants in the real estate analysis profession Collectors of Data Analysts of Data Who prospers most? Who is the professional and who is the para-professional? What is the vision for the profession?

5 The Appraiser of Today Inadequate technology Residential-imprisoned by the form Primitive Technology Real Estate Industry being left behind All tech for appraisers is desktop Not web Not even laptop Not Mobile As an industry we still think within the box that is the form The solution remains how to fill out the form No “real” tools-all tech is focused on form-filling We are spending 80% of our time typing data into forms or into Word.docs-We are not analyzing a we could if we had the tools

6 The Trends to Watch For Cloud Computing Big Data Mobile Technology Social Networks New Analytics Augmented Reality

7 The Rise of Databases UAD Fannie Freddie 100 Million Property DB in 10 years Knowing more about the market than appraisers-what do you do?

8 Cloud Computing Seeing through the hype to discover the potential Its not just for storage It’s all about analytics Leveraging the analytics in the cloud provides significant improvement in the field Analyze everything in real-time Analytics that were never before possible at the device level

9 Big Data More data on virtually everything How is the data analyzed? What is the benefit? Data availability will only accelerate Where are the tools to analyze? What you need to look for What you need to do The Three Four V’s

10 OfficeConventional Wisdom: Lease Are Getting Smaller As a Result of Shrinking SF/Employee

11 TYPICAL LEASE SIZE FALLING 70 SQUARE FEET PER YEAR OFFICE LEASE SIZE IN SF--ROLLING 4 QTR AVERAGE

12 SMALL TENANTS DISPROPTIONATELY DRIVING DEMAND PPR54 OFFICE MARKET: NEW LEASING

13 Multi FamilyConventional Wisdom: The Market is Getting Overbuilt

14 CLASS A SUPPLY VS INCOME-QUALIFIED DEMAND ( ) DEVELOPERS ASSUMING HUGE POOLS OF LUXURY RENTERS

15 OfficeConventional Wisdom: Renewal Probability Is ~70%

16 IF YOU LAND AN ELEPHANT, IT STAYS PROBABILITY OF RENEWAL BY TENANT SIZE

17 IndustrialConventional Wisdom: Warehouse Buildings are Commodities

18 MARKETS HAVE LIMITED IMPACT ON RE-LEASE POTENTIAL BIG & NEW ASSETS IN DISTRIBUTION MARKETS

19 IT’S ALL ABOUT THE MARKET BIG & OLD ASSETS IN DISTRIBUTION MARKETS

20 RetailConventional Wisdom: The Best Days for Retail Are Behind Us – Blame it on E-Commerce

21 ONLINE VS. IN-STORE SALES VOLUME AND GROWTH NET GAINING GROUND…

22 … BUT SO IS PRODUCTIVITY … PHYSICAL RETAIL SALES PER SF OF RETAIL SPACE

23 … THERE IS SIGNIFICANT NOI UPSIDE BREWING PHYSICAL SALES PER SF AND RENT LEVEL

24 IndustrialConventional Wisdom: Portfolio Premium Exists for Warehouse Assets

25 PORTFOLIOS ARE BIGGER THAN EVER WAREHOUSE INIDIVIDUAL ASSET VS. PORTFOLIO PRICING*

26 IF YOU BUILD IT… WAREHOUSE INDIVIDUAL ASSET VS. PORTFOLIO PRICING

27 RetailConventional Wisdom: Grocery Anchored Center Are a Safe Bet – Immune to E-Commerce

28 BIG BOX EATING GROCERS’ LUNCH GROCERY SPACE AND EQUIVALENT BY RETAILER

29 BUT SOME SAFETY CAN BE FOUND SHARE OF GROCERY STORES IN GREAT AND TERRIBLE CENTERS

30 Data to Information

31 Mobile Technology Good-bye desktop, good-bye lap-top Hello tablet and iPad This changes everything Three monitors is not the solutions Going smaller and going mobile Completing the appraisal in the field while you are at the house The inspection corollary Efficiency, efficiency, efficiency

32 Social Networks Appraisers don’t play well together We don’t share well We don’t take advantage of the opportunities that collaboration allows Sharing Talking advantage of each person’s expertise and opinions and experience You cannot leverage data unless you share Real time sharing in the field with your peers

33 New Analytics Regression Analysis Geographically-Weighted Regression Monte Carlo Analysis Non-Linear Modeling More Data-Better Models

34 “Bloomberg Terminal”

35 Augmented Reality Not just what you an see But what you cannot see Linked together based on geography Think layers of a cake The Landscape of Valuation EVERYTHING about a property demographics Economics Trends Legal Zoning

36

37 What Should You Do? Some of these technologies are here Costar Some are being developed Looking for industry adoption Over the next 24 months the world changes Be aware and be ready

38 There are 6500 FDIC Banks….thousands that do less than 500 residential mortgage originations a year. Too Big to Fail…Too Small to Comply

39 Appraisers – THE eyes and ears of the lender

40 Data Now Readily Available

41 The pendulum swings back New rulings make using AMCs (potentially) a business risk There are benefits to both sides – Appraisers get paid more (potentially better service) – Better appraisers and appraisals But…Banks need good technology (processes) and audit capabilities to prove “arms length” and remain in compliance AMCs to Self Management What data and technology is going to be used?

42 Discussion and Q&A

43 Questions for Consideration With the consumer having access to more information than ever before, what effect do you think that will have on the appraisal process? (Zillow, transaction histories) Why should I care about the secondary market creating a data warehouse? What is the role of AVMs as we go forward? I’m not an environmental expert (as an appraiser) I’ve never offered that information and I don’t plan on it. Why would I? How do I understand “big data” in the context of how it will affect my job?


Download ppt "Real Estate Data: What Will the Future Behold? Mark R. Linne, MAI, SRAJack Huntress Rene Circ CEO/Chief Analytics OfficerManaging Director-Residential."

Similar presentations


Ads by Google