Davis Polk partner and IP & Commercial Transactions practice head Frank Azzopardi was quoted in Law360 discussing the use of data in the real estate industry and how that has evolved over the last decade. 

The article highlights that data and technology are taking on an increasingly important role in the real estate business.

Frank said there has been a “real evolution” in the last 15 years in how data is treated in commercial transactions. He noted that, The Related Cos., was very “forward-thinking” in recognizing the importance of data in its Hudson Yards development on the west side of Manhattan.

“Commercial real estate sponsors have recognized that they sit on a treasure trove of data that can be really, really valuable when aggregated because it can convey behavioral and demographic trends,” said Frank.

Discussing how to monetize this data, Frank explains, “Businesses like a casino where you have reward programs have become much more sophisticated than getting to know their customer and ensuring that they reward loyalty in a way that’s really accretive to their bottom line.”

Loyalty programs, according to Frank, have “ballooned in their sense of value and importance to become really valuable pieces of collateral.”

The article also notes that these types of assets are typically structured into a bankruptcy remote special purpose vehicle, which can be used as collateral to borrow against it. 

“The lender essentially has a heightened form of collateral where it can terminate the usage rights of that data to the borrower, and so that tension basically preserves the financing structure, notwithstanding the fact that the borrower might be seeking protection under bankruptcy,” Frank said, highlighting that this “mutually assured destruction” structure is very attractive for investors because of this added layer of protection.

Discussing the possibilities for leveraging data collected through commercial real estate properties, Frank said, “It’s amorphous, and because it’s amorphous, as long as you’re complying with the terms of use with respect to that data, you can leverage it in ways that can create tremendous value.”

“Data No Longer An Afterthought In Real Estate,” Law360 (March 5, 2026) (subscription required)

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