The evolution of commercial real estate technology has transformed prospecting as we once knew it. Manual sourcing strategies and tracking down property records have gone by the wayside. The new era of PropTech is here and it’s backed by big data, arming commercial real estate professionals with comprehensive insights needed to evaluate assets earlier, before ever stepping foot in a building. Despite these strides, many platforms overlook a critical component of property-related intel: commercial tenant information.
Although some companies offer insights into other aspects of commercial assets, like geospatial and transactional criteria, few offer robust tenant insights that are invaluable to so many users. From tenant classification to property manager names and respective contact information, access to occupant data can elevate a prospecting strategy to new heights. Not only does commercial tenant data help professionals save time on sourcing during the discovery phase, but it also helps users gauge return-on-investment and opens doors to more personalized negotiations in the final stages of deal-making.
Tenant data promotes greater efficiency in prospecting
Simply put, commercial tenant data is a valuable component of any successful discovery strategy. For tenant representatives and leasing brokers especially, access to tenant-related information can facilitate stronger prospecting tactics that yield better results. How? It all stems from greater efficiency. Rather than manually sourcing new opportunities and hunting down disparate rent rolls, powerful commercial real estate platforms compile commercial tenant information from various sources, allowing leasing brokers to take back their time.
At Reonomy, we recognize the part tenant data plays in the discovery phase and have designed our platform to harness more than 11 million tenant records on over 4.9 million different properties. Using machine learning technology in conjunction with our partner data ecosystem, our records now include occupant information including NAICS and SIC classifications, legal business names and tenant contact details. This information is housed in a single location, along with other property-related intel like ownership portfolios and property specs, so users have a holistic understanding of the opportunity at stake. We realized early on that tenant representatives and leasing brokers want to find and analyze the opportunities best suited to them, eliminating time spent on preliminary sourcing.
For example, a tenant representative looking to find their client a new office space can use tenant data to see if similar occupants are currently in the building. This, along with other building information such as square footage and neighboring occupants, can help determine whether a lease is worth pursuing or not. Similarly, if a leasing representative wants to sign a new client, they can leverage associated tenant contact information to get in touch with decision-makers. Ultimately, the time these professionals save on prospecting can be re-allocated on pitching and deal-making, increasing their chances of securing new business.
Tenant data increases insights during asset evaluation
Because the value of a building is largely influenced by its existing tenant base, knowing exactly which companies are currently occupying space can present stronger insights into an asset’s value. Specifically in industries like retail and hospitality where triple net leases are often preferred, access to tenant information can empower investors and commercial brokers in valuation. The level of responsibility a tenant takes from a NNN lease is beneficial from an ownership standpoint and lends to a steadier stream of income. The trouble is, finding these investment opportunities can be difficult without the right resources.
Commercial tenant data enables better insights on value and estimated ROI on a property through its database of tenant data. This is particularly true for investors and commercial brokers evaluating NNN opportunities. By examining a property’s current tenants and leveraging general market knowledge, investors and brokers can infer whether or not a property might be leasing to NNN occupants and in turn, generate an idea of potential net operating income (NOI). Better yet, many platforms are able to provide increasingly accurate owner contact information. As a result, those same users can contact owners directly to dig deeper into an asset’s NOI.
Tenant data provides a platform for stronger deal-making
Finally, leveraging commercial tenant data lays a solid foundation for negotiations and deal-making. The same property and occupant insights derived in prospecting can influence how a user approaches and wins a deal. Whether it’s an investor looking for new retail space or a commercial cleaning company looking to expand its services, having access to granular, nuanced property details and tenant intel can elevate the transaction process to benefit both parties.
More than ever before, brokers and other commercial real estate professionals are arming themselves with more accurate data to source high-quality opportunities directly with decision-makers at the owner and tenant levels. Tenant intricacies—like the year founded, associated employee headcount and business classification—can be used in tandem with other asset details to build a case. Again, this business case differs from profession to profession; an investor will approach an owner with a different business proposition than a service provider approaching a property manager. Regardless of the deal, customization can unlock better, more flexible deals and access to more robust tenant data ensures this even further.
As the world of commercial real estate continues to evolve, organizations and individuals shouldn’t underestimate the value of commercial tenant intel. This data, combined with other property information, is equipping industry professionals with the 360-degree view of an asset they will need to unlock new, advantageous opportunities.