The real estate landscape has been slower than some other sectors to adopt certain technologies, but that’s begun to change. Good technology can be helpful for both commercial brokers looking to sell to clients, as well as those making investments in commercial property themselves.
One Deloitte study noted that more CRE investment decisions are being made after considering input from technology like blockchain, IoT data, social media data, geospatial information, satellite imagery, and more.
The power of technology in the CRE Investment
CRE investors and agents alike need to know how technology is likely to impact the commercial real estate space. How can commercial real estate brokers use mobile technology?
From commercial to residential to industrial, the Internet of Things is changing the way people manage their property. The Nest thermostat, for instance, has changed the way that businesses and individuals alike use energy. By being able to monitor and adjust a thermostat remotely, as well as access and analyze usage details, there is a greater degree of both control and customization. This can apply to commercial spaces when you think about how IoT devices can automatically communicate with landowners or property managers to automate repairs. Communicative tech like IoT is appealing to CRE investors because it targets certain property ownership pain points.
2. 3D, VR, and AR
Design technologies are allowing CRE brokers to better represent their property to buyers and investors. Being able to take a 3D tour of the space from a tablet can create a much more dramatic impact than swiping through 2D photos. AR technology that allows buyers to experiment with layout, furniture, and other options can be the experience that allows them to see space’s potential more fully.
3. Drone technology
Drones are not new to real estate; brokers saw the opportunity for application as soon as drone tech came on the scene. It helps drive CRE investment, however, because it helps better capture the expanse of certain commercial properties from high rise office buildings to stadiums to and even public parks. When more research is being done on tablets and smartphones than ever before, having the right kind of imagery is key for property buyers and sellers.
4. Big data
While not mobile specific, big data analysis will have a significant impact on CRE as it can provide better information on neighborhood features such as history of the property, ownership cost, current value, details of the neighborhood, estimate of mortgage payment and estimated forecast of future valuation of the property, all by being able to access and analyze numerous data sets like public data records, marketing information, and more.
Blockchain: Again, blockchain isn’t limited to mobile use, but it does have the potential to disrupt the real estate space. First, since blockchain function as a decentralized but public ledger, it could transform the way rental property payments are collected by removing middlemen and reducing transaction costs. It can also help drive cost effectiveness and better decision-making in leasing processes by using a shared blockchain database. That would allow all relevant stakeholders including owners, tenants and service providers to access ownership information or transaction history with both transparency and security. It’s possible that real estate assets themselves can be made transferable with the use of blockchain. A tech platform call Brickblock allows users to buy tokenized shares of real-world assets with cryptocurrency with the goal of making real estate more accessible and reducing restrictions or difficulties associated with traditional financial institutions like banks and mortgage brokers.
Technology stands to make a big impact in the CRE investment space, helping to drive more educated buying decisions. It can empower CRE investors in making confident purchasing decisions and also help the commercial real estate industry engage better with buyers by offering more information, resources, and answers during the buying process.