Bridging the Data Gap in Retail Real Estate Through AI-Powered Analytics

Written by:

Steve Marcinuk

Date:

19 Aug 2025

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The retail real estate sector has long struggled with a fundamental challenge that sets it apart from other commercial property types: the opacity of rental data. While multifamily properties publish their rental rates openly, retail properties operate in a more private environment where actual rent rolls remain closely guarded information. This data scarcity has created inefficiencies that technology companies are now working to address.

Hunter McElhaney, Managing Director of Retail Investment Sales at Offerd, brings a unique perspective to this challenge. After spending a decade in retail real estate at Due West Realty in Dallas-Fort Worth, McElhaney recently joined the Austin-based technology platform to lead its expansion into retail real estate. His transition from traditional brokerage to a tech-enabled approach reflects broader industry shifts toward data-driven decision making.

The Retail Data Challenge

The fundamental problem in retail real estate centers on information asymmetry. As McElhaney explains, “The most difficult part about retail and what we’re having to coach the algorithm to do is figuring out what the rent roll is for a lot of these shopping centers.”

This lack of transparency creates significant challenges for investors and developers trying to evaluate potential acquisitions. Unlike apartment complexes where rental rates are readily available, retail properties require extensive research to understand true market conditions. “What they’re quoting can typically be different than what the average rent is on the rent roll itself,” McElhaney notes, highlighting the disconnect between advertised rates and actual lease terms.

Traditionally, brokers have had to make numerous calls to property owners, seeking comps and market data that might not be accurate or current. This time-intensive process often yields incomplete information, making informed decisions difficult.

Technology as Market Equalizer

Offerd’s solution involves sophisticated data aggregation and analysis, utilizing “everything from public data to offering memorandums that are out there for specific shopping centers within a submarket,” according to McElhaney. This approach provides a more complete picture of market conditions than traditional methods.

For developers, this technology is especially valuable. “Whenever our developer clients are trying to pencil a deal in an area that they want to make work, it allows our platform to gather much more information and make a much more educated decision,” McElhaney explains.

This data-driven approach signals a shift from the intuition-heavy methods that have long dominated retail real estate, enabling more systematic evaluation of investment opportunities.

From Multifamily Success to Retail Expansion

Offerd’s expansion into retail builds on five years of multifamily sector success, where the company developed a “bespoke algorithm” that analyzes investments across pricing, sizing, markets, traffic patterns, and crime statistics. The platform serves over 700 enterprise clients, providing a foundation for broader asset class expansion, with retail as the first major step beyond multifamily.

Transitioning to retail required significant algorithm adjustments due to less access to public data and the need for advanced analysis techniques to extract intelligence from fragmented sources.

Professional Enhancement, Not Replacement

Unlike platforms aiming to replace brokers, Offerd seeks to enhance professional roles. “It allows a good broker to be a great broker and to much more efficiently utilize their time,” McElhaney emphasizes. The platform integrates CRM and deal tracking, supporting rather than supplanting human expertise.

This philosophy matches McElhaney’s own experience. “Having the tools provided for me and being able to utilize them… it’s nice to have that kind of coaching.”

McElhaney also highlights Offerd’s collaborative culture: “Everybody with the Offerd team is working towards the same goal and rowing in the same direction.”

Market Conditions and Timing

Current market dynamics favor technology adoption, especially in robust regions like Dallas-Fort Worth. “Retail is still going strong. It’s a little different here in the DFW market, and we’ve got sub-5% vacancy on the retail side, and it’s still growing like crazy,” McElhaney reports.

These fundamentals create demand for improved tools. Offerd’s buyer-matching system streamlines transactions by connecting sellers with targeted buyers, increasing efficiency.

Implementation and User Adoption

Offerd is beta testing its retail applications with institutional clients, refining the platform based on real-world feedback. “I’ve got a handful of clients that I’m kind of letting them pilot program through it, just so I can get their honest feedback and things that we want to change.”

Working with clients who have portfolios across asset classes provides valuable comparative insights. “It’s a lot easier to get cross-reference when you get a client that has a number of assets that are both industrial, distribution centers, retail, multifamily, land,” McElhaney explains.

User response has been positive. “Once they finally see ours, they say, ‘Okay, you guys might have something here. I like what y’all are doing.'”

Industry Presence and Growth Strategy

Offerd is increasing its retail presence through industry events such as Retail Live Southwest in Austin, ICSC Red River States, and ICSC Vegas.

This strategy acknowledges the continued importance of relationships in commercial real estate and blends digital tools with traditional networking.

The platform is designed for a range of users, from individual developers to institutional investors, accommodating different acquisition needs and marketing preferences.

Looking Forward

As retail real estate evolves, sophisticated analytics are becoming essential. The sector’s opacity creates opportunities for platforms that can aggregate and analyze fragmented data sources.

McElhaney’s move from brokerage to tech reflects larger industry trends. Success will depend on solving data transparency problems and fostering a culture of collaboration and data-driven decision making.

Platforms like Offerd, focused on enhancing rather than replacing professionals, may be best positioned to gain traction as the retail real estate industry adapts to a more data-centric future.