Sophisticated statistical data: broker's ally.
The use of statistical market information allows for more precise and less speculative decision making. These statistics provide the user with a definition of the real estate market in quantifiable terms. The data provides in-depth analysis of the market from both a current and historical perspective and can be used as a valuable planning tool by owners, lenders, and tenants for space acquisition and disposition. The use of statistical data and analysis can assist both broker and client in making informed decisions.
Since facts are precious in any negotiation, extensive market data has become a very important aid to the broker. An accurate and flexible data base provides a pulse of the market, supplying such information as absorption, vacancy, inventory, availability and asking rents, in a variety of useful groupings. As developers today have complete knowledge about their buildings, the effective broker must provide the building owner or tenant with a comprehensive analysis of the building in relation to the rest of the market. The data serves as a vital instrument in effectively marketing buildings and leasing space at the best rate for the customer, consistent with what the market can bear.
In addition to being useful in a leasing context, statistical data is also essential to fairly assess a property's investment value. Owners, both voluntary and involuntary, lenders, and purchasers all depend upon those brokers who can provide readily available market data.
Serving all these needs demands qualitative interpretation of the data, not just a sterile recitation of facts and figures. At JGT, our Information Services Department continuously tracks the availability of office and industrial properties in New Jersey in order to provide the client with in-depth and up-to-date market information. Particular attention is paid to the manner and form in which data is assembled and presented for the client's use. In addition to key vacancy and absorption rates, important issues such as labor and taxes are also addressed. Accuracy is essential to the usefulness of the data provided; at JGT, our Financial Services Department and staff of over 40 brokers check and re-check the data on a daily basis.
Sophisticated statistical data is the real estate broker's best ally. It helps the broker help the client make informed and appropriate decisions. Statistics provide both broker and client a reality check, an objective read of how each transaction compares to the market. The data puts each deal in context, providing a broader perspective of how the deal relates to the entire market. With state-of-the-art data readily available, the broker is far more efficient, responsive and can apply his or her time to canvassing the market, utilizing personal contact and providing clients with personalized service.
While comprehensive market data is essential to today's brokerage industry, it is not a substitute for judgment. The data provides the broker with objective facts that must then be translated and appropriately applied. Therefore, the advent of sophisticated market data and its daily application in the brokerage industry further highlights the human factor. Every transaction, every decision has its own set of variables - no two transactions are the same. The right data utilized in the right manner with the right translation and application will make for the right real estate decision.
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|Title Annotation:||Real Estate Transcript; computer generated market statistics give dramatic advantage to real estate brokers|
|Publication:||Real Estate Weekly|
|Date:||Sep 15, 1993|
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