The Not Podcast Podcast Recap: The Data Have and Have Nots with Michael Mandel and Josh Herrenkohl

The Data Have and Have Nots: Insights from Josh Herrenkohl

In this episode of The Not Podcast Podcast, Michael Mandel, CEO and Co-Founder of CompStak, is joined by Josh Herrenkohl, Senior Managing Director at FTI Consulting, to explore the challenges and opportunities in commercial real estate (CRE) data. Their conversation dives into the critical role of accurate data, the evolving integration of AI, and the future of data utilization in the CRE industry.

Listen and watch the full episode on Spotify!

Below are the key takeaways from this engaging discussion:

1. Data is the Lifeblood of CRE, but It’s Often Lacking in Quality

Data drives every decision in CRE, yet the industry struggles with decentralized and fragmented data management. As Josh explains, the lack of standardization creates significant challenges, making it harder to ensure consistency and accuracy across the board.

“Compared to other industries, real estate is far behind when it comes to data quality and standardization.”

Josh emphasizes the need for better governance and repeatable processes to overcome these obstacles.

2. Bridging the Gap Between Flexibility and Governance

Investment managers must navigate a delicate balance between front-office flexibility and back-office requirements for strict data governance. This tension is exacerbated by the dynamic nature of property portfolios and the involvement of third-party partners.

Josh highlights the importance of training and standardization to mitigate these challenges, ensuring smoother collaboration and data management.

3. Shifting from Isolated Data to Holistic Analysis

The way organizations use data is evolving. What used to be a deal-specific focus is now transitioning to portfolio-wide analysis.

“Organizations are beginning to leverage data holistically to uncover market trends and improve decision-making across their portfolios.”

This shift requires close collaboration between traditional research teams and data scientists to unlock the full potential of available data.

4. AI is Transforming Data Usage in CRE

Artificial intelligence is revolutionizing the industry by enhancing data accuracy, user interaction, and decision-making processes. Michael and Josh discusses how generative AI, such as chatbots, is improving data completeness and usability.

However, this innovation comes with questions about its impact on jobs and the potential for external AI applications to disrupt the industry.

5. The Rise of Data-Driven Investment Strategies

Josh shares an example of a CRE firm leveraging technology to automate underwriting processes, demonstrating how data-driven strategies can accelerate growth and drive innovation in the sector.

This approach highlights the increasing opportunities for new entrants to disrupt traditional investment models and position themselves as tech leaders in the industry.

6. Data Ownership and Legal Considerations Are Evolving

The conversation wraps up with a focus on the importance of proprietary data and the legal implications of data ownership. As lawsuits surrounding data use increase, organizations must prioritize controlled environments to protect their competitive edge.

“Data is only as valuable as the quality and security of its application.”

This episode is packed with insights for anyone in the CRE space looking to better understand how data and technology are shaping the future of the industry.

Don’t miss the full conversation. Watch the episode on YouTube here.