Will Regulation Limit Real Estate’s Use of Mobile Location Data?

Defining the future of real estate

Author

Franco Faraudo
June 26, 2024

Supported by Crexi

Propmodo Technology

By Franco Faraudo · June 26, 2024

Greetings!

This week’s Propmodo Technology deep dive into property research is brought to you by Crexi. Crexi is a powerful marketplace and technology platform that offers easy-to-use workflow management tools and customizable data analytics, designed to streamline the commercial real estate process from listing to closing. Check out Crexi’s latest trends report, which examines CRE activity on Crexi throughout Q1 2024.

The use of mobile location data has expanded beyond tech to various industries, including real estate. But, rising regulatory scrutiny is challenging how this sensitive data is handled and shared. In this week's email, we discuss recent FCC investigations and fines, which highlight growing concerns over privacy and data protection. This could potentially impact the future of the real estate industry, which increasingly relies on this data for crucial decisions.

We're excited to bring you new articles about property research technology. Real estate investors are tracking retailers like Trader Joe's and ALDI to leverage their site selection processes for informed investment decisions. Emerging technologies like AI are streamlining deal research, analysis, and closing. Manual foot traffic counts have evolved to include advanced systems using computer vision, providing deeper insights into space usage and occupant behavior.

Now, let’s go!

Will Regulation Limit Real Estate’s Use of Mobile Location Data?

Not long ago, few outside the tech industry had heard of mobile location data. Since the first smartphone, software developers have harnessed this precious data collected by an army of mobile phones. Only recently has this data been utilized in other industries. Increasingly, companies sell mobile location platforms and analysis to sectors such as transportation, retail, events, and real estate. Mobile location data has now become a standard tool for real estate underwriting, complementing traditional metrics like occupancy, sales comps, and rent rolls.

With the rapid rise in the use of mobile location data came increased regulatory scrutiny. In 2018, U.S. Senator Ron Wyden of Oregon wrote an open letter to the Federal Communications Commission (FCC) regarding what he believed to be an abuse of power by Securus Technology. As a provider of correctional facility telephony services, Securus was providing data purchased from wireless carriers “to conduct activities wholly unrelated to correctional facility telephone services.”

The FCC Enforcement Bureau investigated, and Securus eventually settled for $1.7 million. While the fine wasn’t huge, it spurred the FCC to focus on mobile phone carriers and the sensitive data they sell. “Our communications providers have access to some of the most sensitive information about us. These carriers failed to protect the information entrusted to them. Here, we are talking about some of the most sensitive data in their possession: customers’ real-time location information, revealing where they go and who they are,” said FCC Chairwoman Jessica Rosenworcel.

In February 2020, the FCC proposed fines totaling almost $200 million against the largest mobile carriers in the country, including T-Mobile, AT&T, Verizon, and Sprint, for selling customer location data to third-party aggregators without sufficient safeguards to protect user privacy. “The protection and use of sensitive personal data such as location information is sacrosanct,” said Loyaan A. Egal, Chief of the FCC Enforcement Bureau and Chair of its Privacy and Data Protection Task Force. “When placed in the wrong hands or used for nefarious purposes, it puts all of us at risk.”

These types of investigations are far from over. In 2023, the Privacy and Data Protection Task Force was created “to address problems that erode the public’s trust in data protection.” Politicians are so concerned about sensitive data being collected and sold by tech companies that a bill to force TikTok’s parent company to sell its social media platform received rare bipartisan support. So far, mobile location data is still for sale in an anonymized form. But, if the FCC continues its crusade against mobile location data sharing, it could make it harder for the real estate industry to obtain the data it relies on for many important decisions.

Check out Crexi’s latest trends report, which examines CRE activity on Crexi throughout Q1 2024, considering quarterly metrics and year-over-year data, enabling stakeholders to make informed strategic decisions when navigating the potentially complicated waters ahead.

All data is powered by Crexi Intelligence, the most innovative research and analytics software designed for the CRE industry. With 153+ nationwide CRE property records and sales comps, comprehensive market and property demographic insights, Intelligence aggregates actionable, real-time data into a single, intuitive source of truth to confidently make decisions.

Property Investors Follow the Lead of Retailers like Trader Joe’s and Starbucks

Property investors often rely on extensive data analysis to predict rising property values. But, tracking retailers like Trader Joe's, Whole Foods, ALDI, Starbucks, and Walmart offers a shortcut. These brands have been proven to positively influence local property values and signal neighborhood potential. Property investors can leverage these and other retailers' sophisticated site selection processes to piggyback their research and make informed investment decisions of their own.

READ ONLINE: https://propmodo.com/property-investors-follow-the-lead-of-retailers-like-trader-joes-and-starbucks/

3 Easy Ways to Enhance CRE Deal Flow Using Data

In commercial real estate, emerging technologies like AI and augmented reality are reshaping how deals are researched, analyzed, and closed. These innovations streamline processes, save time, and enhance competitive advantage. By leveraging tools such as CMBS and pre-foreclosure data, professionals can identify new opportunities and expedite transactions. Comprehensive data dashboards and analytics tools offer deep market insights, speeding up due diligence and decision-making. Enhanced connectivity through technology facilitates faster, more informed deal closures, empowering stakeholders to seize opportunities and drive business growth.

READ ONLINE: https://propmodo.com/3-easy-ways-to-enhance-cre-deal-flow-using-data/

Foot Traffic: A Time-Tested Property Metric Has Some New Tricks

Property research has progressed from manual foot traffic counts to advanced technologies. Initially done by hand, counting foot traffic provided insight into building utilization and value. Today, sophisticated systems track more than just entry and exit numbers; they integrate with building systems and use technologies like computer vision. These advancements enable a deeper understanding of space usage and occupant behavior, informing property value and lease terms decisions. This data is now widely accessible, democratizing foot traffic analysis and enhancing property management strategies.

READ ONLINE: https://propmodo.com/foot-traffic-a-time-tested-property-metric-has-some-new-tricks/

Bytes

🏌🏻‍♂️ City of agency: Clever Real Estate has released a ranking of the best cities in the U.S. for real estate agents based on metrics like salary, affordability, property value, and deal volume.

✅ Stand corrected: Researchers at Florida Atlantic University have created an overvalued real estate index that measures the difference in the actual average home price in a city and compares it to the long-term pricing trend for the city.

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Propmodo Technology is edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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