8 Emerging Technologies Changing the Future of Commercial Real Estate
The commercial real estate industry has finally found its place in the world of technology.
This rapid growth is taking place a 10 years’ stagnation.
Technology is a catalyst for significant change.
It has made buying and selling of properties easier. It has also made several activities more streamlined and profitable.
The hardware and software tools incorporated into real estate proves useful in managing real estate data.
Building owners and property managers have benefitted from this technology phenomena. Property brokers and asset managers are not left out too.
The industry has moved past some fundamental problems. Such problems include calculating ROI of a specific application and the fact that the industry is becoming crowded. In recent years, the focus shifted to more positive outcomes of the current competitive industry.
In 2017, investors spent up to $5 billion on real estate technology.
For real estate enthusiasts, this is an exciting time.
8 ways Technology is reshaping the future of commercial real estate:
- Automation Tools, Automation Systems, and Energy Management
Automation tools can reduce the workload on real estate agencies. Real estate agencies gather and analyze property data. Analysis of data helps in closing deals. The quality of advice they offer to sellers and the leads generated also depend on data.
This task is demanding and time-consuming. Data collection in itself takes too much time; leaving little or no time to analyze data. With automation tools, agents can now gather and analyze data in little time and with less manual work.
Automation tools have other essential uses. Some of them include the compilation of pricing data in the pricing stage of a deal and elimination of countless meetings. Another important use is marketing efforts (from advertisement to email and social media marketing).
The evolution of building automation software allows for interaction between systems. A typical example is SkySpark. The software automates energy fault detection, commissioning of buildings and load profiling. It also automates energy analysis, carbon and greenhouse gas reporting, and facility benchmarking.
The benefits that come with automation and visualized analytics are too juicy for excuses not to use technology.
Blockchain technology is as an antifraud technology. It is the backbone of popular digital currencies such as bitcoin. In January 2018, an agency sold a home for the first time in the U.S using blockchain. Several real estate agencies embraced bitcoin for the sale of properties since then.
Blockchain technology is useful for verifying property contracts in real estate. This advancement would be useful in developing countries. Fraudulent activities in landed properties are rampant in these countries.
- Customer Relationship Management (CRM) and Deal Management Software
In real estate today, CRMs integrate data on buildings, tenants, submarkets, lease expiration dates and the likes of them. The aim is to make data work for the user. With this software, when a broker is in a conversation with a client, he has a wide variety of information to give great insights. CRM and deal management software makes it possible for today’s real estate broker to track transactions online. It also makes it possible to manage an entire transaction online from start to finish.
- Alternative financing sources and investor relations software
Right from the recession, alternative lenders and equity sources of capital have been on the rise. More people can now take part in wealth building through real estate by virtue of technology. At the speed of light, owners and operators can raise equity or secure debt for projects. Online management of investors is also possible now. Platforms that serve this market include CrowdSteet and debt platforms like Sharestates.
Several law Acts that serve as the backbone for this technology. They include the Jumpstart Our Business Startups Act, the JOBS Act, and unleashed crowdfunding.
- Internet of Things (IoT)
Billions of devices around the world now collect and share data, using the internet. This act describes the Internet of Things.
In real estate, managers and owners of properties are making use of IoT to control and monitor specific details of a property. It ranges from simple to complex details; temperature, lighting levels, quality of air, security systems, fire systems, etc.
- Tenant relations, maintenance management, and communications software
Yardi is an example of a software provider that makes these functions possible. More aspects of day-to-day businesses are continually incorporated into tech. building engines typically challenge the market to make this possible.
In maintenance management, mobile inspections make it possible to spot defects. When the inspection is connected to an equipment record, information on the vendors are easily tracked, communications are made and tenant relations is easy.
- Augmented Reality (AR) and Virtual Reality (VR)
The application of AR and VR in the real estate industry is continuously enjoying relevance. The AR and VR market in real estate is predicted to reach an estimated US $80billion by 2025. VR headsets are now used to tour homes. The headsets are used along with 360-degree cameras to create virtual designs of properties.
AR applications such as MeasureKit and PLNAR have proved useful in taking dimensions in the creation of a floor plan.
- Asset management software
Property inventory software; assisting in analyzing portfolio metrics and reporting is now used on the rise thanks to technological advancement. VTS is an example of this.
Several modern asset management software makes it possible to use Excel in various ways other than the typical traditional uses.
The list of technological advancement in real estate is unending. Embracing these new technologies in real estate will birth further advancement. Technology is here to stay, and an investment in technology is necessary to stay relevant in the real estate market.