Our industry is engaged in an important dialogue to improve sustainability through transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.
Data has taken over the real estate world—and for good reason. The ability to collect, analyze, and act on high-quality data is transforming how investors, asset managers, and property owners make decisions. The days of relying on gut instinct or outdated spreadsheets are fading. In today’s market, if you’re not using data to drive your performance strategy, you’re already falling behind.
So, what’s the big deal? The right data doesn’t just make life easier; it maximizes asset value, improves building performance, and helps investors stay ahead of the curve. But not all data is created equal. Poor quality or incomplete data can seriously hurt your bottom line, making it harder to optimize operations, measure success, and manage risk. And let’s not forget the risk around stranded assets.
Let’s break down why data is so powerful in real estate, and how it can be harnessed to be the game changer that it is.
The value of data
The real estate industry has come a long way from back-of-the-napkin calculations and best guesses, and with it only getting more competitive with every year, it’s long been an industry all about innovation and disruption.
Today, data is a non-negotiable part of successful real estate investment and management, and here’s why:
- Smarter asset management: With the right data, you can optimize leasing strategies, reduce operating costs, and improve resident experiences.
- Better investment decisions: Data-backed insights help investors assess risks, identify opportunities, and make informed choices.
- Understanding resident needs: The more you know about resident behaviors, the better you can design spaces that people want to use.
- Staying compliant: Regulations around ESG, sustainability, and energy efficiency are only getting stricter. Good data helps you stay ahead of the game.
- Reducing risk: When you can spot inefficiencies and market shifts early, you’re better equipped to manage potential downturns. And in the context of trading assets, data can help you reduce the risk of stranded assets. But we’ll cover more on that below.
Not just any data—quality data
Having data is one thing. Having high-quality, comprehensive, and comparable data? That’s where the magic happens. Without it, even the best strategies can fall apart. Here’s how bad data—or not enough data—can hurt real estate performance:
- Poor building performance
If you’re not tracking the right metrics, inefficiencies in energy use, maintenance, and resident satisfaction can go unnoticed. That means higher costs, wasted resources, and a property that just doesn’t perform as well as it could. - Inaccurate property valuations
As we know, investors rely on key metrics like net asset value and net operating income to measure success. If these figures are based on incomplete or incorrect data, assets can be over or undervalued, leading to poor investment decisions. - Compliance headaches
Regulatory requirements around ESG are only increasing. Without solid data, it’s easy to fall out of compliance, risking penalties and reputational damage. - Reduced competitiveness
If your competitors are making data-driven decisions (and they are!), and you’re not, guess who’s going to win… The market is moving fast, and staying ahead means using every advantage available.
Data, stranded assets & trading risks
Let’s talk about one of the biggest risks facing real estate investors today: stranded assets. These are properties that lose value because they’re no longer aligned with market, regulatory, or environmental standards. And no surprises here—Poor data management is a big reason why this happens.
By leveraging real-time performance tracking, predictive analytics, and sustainability data, property owners can take proactive steps to ensure their buildings remain competitive, compliant, and highly marketable. Data-driven decision-making also makes it easier to trade assets at the right time, maximizing returns and reducing risk. Investors and buyers are increasingly prioritizing properties with strong data-backed performance records, meaning well-documented assets command higher prices and trade more efficiently in the market. Data isn’t just about tracking what’s happening—it’s about creating opportunities, safeguarding investments, and future-proofing assets.
For example, Utopi had a client trying to sell an asset, and data protected the asset sale. The asset had a consultant do an assessment on the building, and the report came back saying the student accommodation had “poor” heating systems installed. Using Utopi data, we were able to export heating data from the last two heating seasons and analyze the site temperatures throughout that period, showing high and low temperatures versus occupancy levels. These granular insights proved the heating system was working as it should, not overheating the building, and reducing in temperature when students weren’t in their rooms. This assurance meant the asset sale was able to continue, and save the building owner over GBP 120,000 in potential heating upgrade costs.
The real estate industry is forever changing, and those who embrace data will be the ones who ultimately come out on top. High-quality, actionable insights are the key to better decision-making, stronger asset performance, and higher investment returns. On the flip side, ignoring data—or using inaccurate data—can lead to inefficiencies and serious financial risk.
We’ve only scratched the surface here, but data is a powerful tool when harnessed right. And ultimately it will help us all build a smarter, more resilient real estate future together.
This article was written by Ben Roberts, CMO and Co-Founder at Utopi Ltd. Learn more about Utopi Ltd. here.