State of Data Science in Commercial Real Estate Investing

This research report examines the current state of data science in commercial real estate (CRE) investing. It outlines the methodologies used to gather insights, including qualitative interviews and a quantitative survey conducted with over 400 decision-makers in the industry. The report details the advanced yet confused landscape of data science capabilities among CRE investors, highlighting that while many firms recognize the importance of data, there is significant uncertainty regarding their competitive positioning. It presents findings that indicate over half of the respondents utilize data science tools, yet many lack clarity on how their capabilities compare to peers. The report also discusses key challenges in establishing data science capabilities, including the need for both internal development and external resources. Furthermore, it addresses distorted perceptions of the adoption curve, revealing that many firms may overestimate their sophistication in data science relative to their competitors. The conclusions emphasize the necessity for enhanced competitive intelligence in the evolving data landscape.