Data is still king when it comes to commercial property investment, says Consorto® Senior Business Relations Manager Mario Krivokapic.
In the residential property sector, the heart often rules the head and buyers need to see properties, but the commercial sector is dominated by data-led decisions.
Data, data, data
“With residential, if you’re buying a house or a home, most of the time you will make your decision with emotions – whether you like the house, or you don’t like it. But in commercial, there is very little emotion involved because it’s data, data, data. Everything is decided by data. Data is still king. And if the deal makes sense of the will make sense. And if it doesn’t, it doesn’t.”
The COVID-19 pandemic has hastened the move of commercial property investors to Consorto.com and other online real estate platforms.
As commercial property decisions are based more on data, European CRE deals are still progressing despite COVID-related travel limitations.
“For investors, COVID has changed the sector due to travel restrictions. There are still some people that want to touch and feel the property to kind of get a sense of it. But you can do deals without that. You have companies that carry out both environmental and technical due diligence. You can have inspections. Even if investors are not there, if the numbers are right, if the data supports it, if the comparables support it, then you have a good deal.”
The pandemic has created a significant increase in logistics and data facilities. “With the rise of e-commerce, interest in logistics and light industrial property has exploded.
“There has been a fall-off in hospitality office spaces, but there is an expectation that people will come back to office spaces – to more of a hybrid working arrangement – and five-star luxury hotels always attract interest.
With a property portfolio that currently totals €14.7b, Consorto® has an impressive choice for investors. “I don’t think any other platform has that much European commercial property in value, but we are always looking for high-quality real estate listings – and it is free for brokers and sellers to post property on Consorto.com.”
Another big advantage is Consorto’s AI-driven deal matching and new Deal Flow automation system that takes brokers and agents through the steps needed to complete the sale and assists investors to find relevant CRE deals, evaluate the deals and proceed to closing.
Mario reveals what CRE investors really want.