Tech advancements continue to shake up every industry; and commercial real estate is no exception. Sure, adopting new tech can be intimidating, and navigating the means for effectively and profitably implementing tech in CRE isn’t always the easiest process; but there’s no doubt that tech innovations will continue advancing, so embracing them is more or less imperative for the health and longevity of your CRE business.
The sooner you open up to embracing commercial real estate tech, the better equipped you’ll be to remain a strong competitor in such an ever-changing market.
Defining CRE Technology
When we talk about commercial real estate technology, we’re essentially referencing both the software and hardware that makes it easier for appraisers and other CRE professionals to complete their jobs on a day-to-day business. From prospecting and appraising, to conducting further due diligence on a property and leasing a space, technology can be used to streamline the various processes native to commercial real estate.
Following, let’s take a look at some of the main tech trends shaping CRE.
Today, artificial intelligence (AI) has taken the world by storm and is slowly integrating every facet of our lives. This is especially true in commercial real estate, where AI has made it easier for commercial real estate professionals to navigate the realm of big data. For instance, AI has led to an explosion of online platforms that offer increasingly detailed and machine-learned analysis for sales, services, and property management.
Smart building management systems, for instance, can carry out automated procedures and track building operations, and AI technology can be used to identify patterns and anomalies in the data being tracked. That data can include anything from business functions to building temperature. These innovations allow property managers and building engineers to more effectively apply predictive analytics, perform preventative maintenance, optimize energy usage, and save costs.
The Rise of Smart Buildings
It’s crucial for CRE companies to recognize IoT technology as a priority when designing, retrofitting, or evaluating their buildings. Modern tenants increasingly value tech-based solutions and sustainability initiatives. Such advancements can, in turn, improve upon a property’s value.
Knowing the true value of something is more important than ever and can be more difficult to discern — especially amid today’s ever-evolving real estate landscape. But that’s our specialty at Valbridge Property Advisors. Our appraisers evaluate commercial property based on objective criteria, in-depth knowledge of local markets and primed knowledge on the latest and greatest in CRE tech. We pay attention to criteria concerning smart and green infrastructure and leave no stone unturned when it comes to evaluating a property.
Small aerial vehicles dubbed drones now have many commercial real estate applications. Drone technology is being used to survey and photograph properties from bird’s-eye vantage points and other normally inaccessible angles. Using high-quality visual imagery from drones, CRE professionals can truly get a 360-degree view of the property and its offerings.
Drones are also being deployed for architecture and construction — something to keep in mind if building a new property is part of your plan.
IoT Data Availability
The internet of things (IoT) is a massive network that’s transforming how CRE professionals make key decisions by streamlining the data-sharing process.
On the operational side of things, for example, IoT-enabled security systems provide real-time monitoring and can direct building managers to security, maintenance, and repair issues even before tenants report a problem. Smart sensors can monitor a property’s energy use and the data can be analyzed in order to make infrastructure decisions.
We’re even seeing retail locations and their property managers use IoT to monitor consumers’ shopping habits, which is useful information for building owners as they consider repositioning their properties.
Augmented and Virtual Reality
Both augmented and virtual reality systems are also taking a strong hold of CRE. AR/VR technology provides investors with the opportunity to view properties without time-consuming and expensive travel between locations, which has opened the doors to investors looking to buy CRE in more distant markets. The accessibility of viewing a property from virtually anywhere has greatly expanded the options available to potential buyers and investors.
Even more, contractors can use AR/VR technology during the design and construction phase of a project. Project managers can also use AR/VR to check in on new construction and/or like tenant improvement projects without conducting physical site visits.
We’re even seeing sales and leasing brokers use AR/VR equipment to take prospects on a virtual tour of the property – which expands the pool of buyers and helps brokers sell properties in less time.
Keeping Up with CRE Tech
As we mentioned from the start, tech advancements continue to shape and reshape every industry; and CRE is no exception. Valbridge professionals are trusted by clients to provide powerful and educated insights for better business and we’ve got our eye on tech. We own our software company, Datappraise, and are constantly researching new tech partners to team up with. Contact us today to learn more.