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Not long ago, few people outside the technology industry had heard of mobile location data. Since the advent of smartphones, software developers have been leveraging this valuable data collected by an army of mobile phones. Only recently has this data been used in other industries. More and more companies are selling mobile location platforms and analytics to industries such as transportation, retail, events and real estate. Mobile location data has now become a standard tool for property insurance, complementing traditional metrics such as occupancy, sales comparisons and rent rolls.

With the rapid rise in the use of mobile location data has come increased regulatory scrutiny. In 2018, U.S. Senator Ron Wyden of Oregon wrote an open letter to the Federal Communications Commission (FCC) calling Securus Technology an abuse of power. As a provider of phone services to correctional facilities, Securus provided data purchased from wireless carriers “to conduct activities unrelated to the provision of phone services to correctional facilities.”

The FCC Enforcement Bureau investigated the case and Securus eventually settled for $1.7 million. While the fine wasn’t large, it prompted the FCC to focus on wireless carriers and the sensitive data they sell. “Our communications providers have access to some of the most sensitive information about us. These providers have failed to protect the information entrusted to them. This is about some of the most sensitive data they possess: real-time customer location information that reveals where they go and who they are,” said FCC Chair Jessica Rosenworcel.

In February 2020, the FCC proposed fines totaling nearly $200 million against the nation’s largest wireless carriers, including T-Mobile, AT&T, Verizon and Sprint, for selling customer location data to third-party aggregators without adequate safeguards to protect user privacy. “The protection and use of sensitive personal data, such as location information, is sacrosanct,” said Loyaan A. Egal, director of the FCC Enforcement Bureau and chair of the Data Protection and Privacy Task Force. “If it falls into the wrong hands or is used for nefarious purposes, it puts us all at risk.”

These kinds of investigations are far from over. In 2023, the Data Protection and Privacy Task Force was created “to address issues that undermine public trust in data privacy.” Politicians are so concerned about tech companies collecting and selling sensitive data that a bill to force TikTok’s parent company to sell its social media platform received rare bipartisan support. For now, mobile location data is still available for sale in anonymized form. But if the FCC continues its crusade against sharing mobile location data, it could make it harder for the real estate industry to get its hands on the data it relies on to make many important decisions.

Real estate research

Real estate investors are following the example of retailers like Trader Joe’s and Starbucks

Real estate investors often rely on extensive data analytics to predict rising property values. But monitoring retailers like Trader Joe’s, Whole Foods, ALDI, Starbucks and Walmart offers a shortcut. These brands have a proven track record of positively impacting local property values ​​and signaling neighborhood potential. Real estate investors can use the sophisticated site selection processes of these and other retailers to supplement their research and make their own informed investment decisions.

3 Simple Ways to Improve CRE Deal Flow Using Data

In commercial real estate, new technologies like AI and augmented reality are changing the way deals are researched, analyzed and closed. These innovations streamline processes, save time and improve competitive advantage. By leveraging tools like CMBS and pre-foreclosure data, professionals can identify new opportunities and expedite transactions. Comprehensive data dashboards and analytics tools provide deep market insights and accelerate due diligence and decision-making. Improved connectivity through technology enables faster and more informed deal closings, empowering stakeholders to capitalize on opportunities and drive business growth.

Real estate research has evolved from manually counting foot traffic to modern technologies. Originally done manually, foot traffic counting provided insights into building usage and value. Today, sophisticated systems track more than just entrances and exits; they are integrated into building systems and leverage technologies such as computer vision. These advances enable a deeper understanding of space usage and occupant behavior, influencing decisions about property value and lease terms. This data is now widely accessible, democratizing foot traffic analysis and improving property management strategies.

Bytes

🏌🏻‍♂️ Agency city: Clever Real Estate has released a ranking of the best cities in the U.S. for real estate agents based on criteria such as salary, affordability, property value and transaction volume.

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

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