Here's how data has transformed other industries and how it could similarly benefit our own:

Historical Data Allows for Proactivity in Financial Services

As PwC points out, we've had the ability to look back at data and make forward projections for years. However, data analytics has reached new sophistication, allowing businesses to be proactive more often.

In financial services, historical data is used in two key ways. First and foremost, companies like banks and insurance companies can improve customer retention rates by using data to analyze internal customer logs. Doing so allows the company to figure out whether a customer might be dissatisfied and identify which customers are likely to leave. Second, access to historical market data allows financial institutions to trigger algorithm-based transactions. In other words, using data analytics, the financial service industry can act without waiting for trends to come to fruition.

Similarly, with a robust set of historical data, the commercial real estate industry could better understand what's happening with customers and the larger market before issues arise. Companies would be able to adjust for and insure against market fluctuations that threaten the bottom line, and proactively address customer pain points before they become major issues. For example, an investment firm could tap historical industry data to identify trends on leasing velocity and tenant demand. This information, along with information on rental rates, could inform whether or not the firm should invest in a new building.

Real-Time Data Drives Better Service in Telecom Performance

Advanced analytics help telecom providers better serve customers. With access to real-time data, telecom providers are constantly monitoring for issues that harm quality or cut off services. As a result, providers typically correct for these problems, ensuring performance improves, often before the customer is even aware of the problem. This information also helps companies maintain their infrastructure, rather than invest in costly repairs. Meanwhile, telecom companies are able to use data to analyze the way customers use their services to identify new product and service areas to better satisfy customers. For example, many telecom providers have begun offering new data tiers for customers who use video conferencing services.

For commercial real estate, access to real-time data would allow property owners and brokers to better serve tenants based on timely needs. While forecasting data can help industry experts predict trends before they happen, real-time data could help businesses be agile and make changes at a moment's notice. In the future, property owners with access to real-time industry data could better identify trends in leasing demand. For example, an owner might notice that biotech companies are driving the most leasing demand in a particular market. To better serve prospective tenants, the property owner could convert office spaces into labs.

Comparative Data Shakes Up Cost Structure in Insurance

Insurance agencies use data to offer customers new incentive-based policies where they pay less if they agree to terms that allow the agency to monitor their personal activity (such as driving activity). Customers pay less, while agencies reduce risk. Insurance agencies are also able to assess the risk of an individual by comparing that person's stats against a database of thousands of similar scenarios.

Data can be leveraged to create new efficiencies so firms can run their business at a greater profit. Right now, property owners, brokers and investors are able to do similar database comparisons, but on a very basic level. For example, they can compare leasing prices of similar spaces in the market, which can inform listing prices. But commercial real estate is currently without a comprehensive database. Information is limited, but down the road it's likely that brokers and owners will be able to make more informed decisions and mitigate risk by tapping a vast pool of leasing and tenant data.

The impact of data isn't limited to a single aspect of business — that becomes incredibly clear as we explore the unique ways data has disrupted various industries. But simply having data isn't enough. The formula for maximizing the commercial real estate industry's growth potential will include the access to, analysis of and ability to pull actionable insights from that data. In many ways, commercial real estate has woken up to the promise of data, but to-date, we're only skimming the surface. There's a world of opportunity out there, as evidenced by other industries that have undergone their own data-inspired transformations. Ours is next.

NEW YORK CITY—“Simply having data isn't enough.” That is according to Nick Romito, founder and CEO of VTS, a leasing and asset management platform. In the exclusive commentary below, Romito says that data analytics has reached new sophistication, allowing businesses to be proactive more often. He also points out that the impact of data isn't limited to a single aspect of business.

The views expressed below are the author's own.

Property owners, brokers and investors experience the market first-hand on a daily basis. They're in the thick of the action—managing portfolios, working one-on-one with tenants, meeting with prospects and so on. However, last month, Hana R. Hong of Manatt highlighted that our own opinions often differ from market realities. That's why we are constantly looking to big picture forecasts, indices, outlooks and federal reports to understand the value and demand for our properties and portfolios. Our day-to-day market experience isn't enough to inform major business decisions. But waiting on reports to make updates to a portfolio can be costly. Trends move quickly. If you blink, you just might miss something big.

For the time being there's no quick fix. Ultimately, data and analytics will allow us to identify market trends before they're widely obvious, thereby helping businesses meet goals. This has proven to be the case for other large and influential industries — like financial services, telecom and insurance. When we look to other industries and what's been accomplished with data, it's clear that there's huge opportunity for commercial real estate. For our industry, data disruption is just beginning.

Here's how data has transformed other industries and how it could similarly benefit our own:

Historical Data Allows for Proactivity in Financial Services

As PwC points out, we've had the ability to look back at data and make forward projections for years. However, data analytics has reached new sophistication, allowing businesses to be proactive more often.

In financial services, historical data is used in two key ways. First and foremost, companies like banks and insurance companies can improve customer retention rates by using data to analyze internal customer logs. Doing so allows the company to figure out whether a customer might be dissatisfied and identify which customers are likely to leave. Second, access to historical market data allows financial institutions to trigger algorithm-based transactions. In other words, using data analytics, the financial service industry can act without waiting for trends to come to fruition.

Similarly, with a robust set of historical data, the commercial real estate industry could better understand what's happening with customers and the larger market before issues arise. Companies would be able to adjust for and insure against market fluctuations that threaten the bottom line, and proactively address customer pain points before they become major issues. For example, an investment firm could tap historical industry data to identify trends on leasing velocity and tenant demand. This information, along with information on rental rates, could inform whether or not the firm should invest in a new building.

Real-Time Data Drives Better Service in Telecom Performance

Advanced analytics help telecom providers better serve customers. With access to real-time data, telecom providers are constantly monitoring for issues that harm quality or cut off services. As a result, providers typically correct for these problems, ensuring performance improves, often before the customer is even aware of the problem. This information also helps companies maintain their infrastructure, rather than invest in costly repairs. Meanwhile, telecom companies are able to use data to analyze the way customers use their services to identify new product and service areas to better satisfy customers. For example, many telecom providers have begun offering new data tiers for customers who use video conferencing services.

For commercial real estate, access to real-time data would allow property owners and brokers to better serve tenants based on timely needs. While forecasting data can help industry experts predict trends before they happen, real-time data could help businesses be agile and make changes at a moment's notice. In the future, property owners with access to real-time industry data could better identify trends in leasing demand. For example, an owner might notice that biotech companies are driving the most leasing demand in a particular market. To better serve prospective tenants, the property owner could convert office spaces into labs.

Comparative Data Shakes Up Cost Structure in Insurance

Insurance agencies use data to offer customers new incentive-based policies where they pay less if they agree to terms that allow the agency to monitor their personal activity (such as driving activity). Customers pay less, while agencies reduce risk. Insurance agencies are also able to assess the risk of an individual by comparing that person's stats against a database of thousands of similar scenarios.

Data can be leveraged to create new efficiencies so firms can run their business at a greater profit. Right now, property owners, brokers and investors are able to do similar database comparisons, but on a very basic level. For example, they can compare leasing prices of similar spaces in the market, which can inform listing prices. But commercial real estate is currently without a comprehensive database. Information is limited, but down the road it's likely that brokers and owners will be able to make more informed decisions and mitigate risk by tapping a vast pool of leasing and tenant data.

The impact of data isn't limited to a single aspect of business — that becomes incredibly clear as we explore the unique ways data has disrupted various industries. But simply having data isn't enough. The formula for maximizing the commercial real estate industry's growth potential will include the access to, analysis of and ability to pull actionable insights from that data. In many ways, commercial real estate has woken up to the promise of data, but to-date, we're only skimming the surface. There's a world of opportunity out there, as evidenced by other industries that have undergone their own data-inspired transformations. Ours is next.