Recently, advancing technology has been beneficial to many industries, including free commercial real estate listings. It was already taking major steps in embracing technology for innovation. Then, 2020 and the COVID-19 pandemic came along, and a new generation of technology became a clear solution to this growing number of concerns.
Not only did safety become a huge concern, but so did job security and industry stability. Many companies and industries switched to telecommunication and remote work, changing the way many professionals interact with their clients.
Let’s take a look at how commercial real estate technology will take over the market this year.
Why Do We Need Technology in Real Estate?
People are more connected to the Internet than ever thanks to smartphones. A strong social media presence can allow commercial real estate businesses to reach out to more clients, thus boosting sales. Since technology is so accessible, it’s almost necessary if you want to see company growth.
Once your company is thriving, organizing your portfolio could be incredibly overwhelming without helpful software. When using the cloud, anyone in the company can have access to documentation, allowing your portfolio and other documents to be regularly updated without hassle.
Most industries have embraced the benefits of technology, and without it, there could be a detrimental lack of efficiency. For example, it’s easier than ever to analyze helpful data. This simplifies the process of choosing clients and conducting due diligence to determine their needs.
What Kind of Technology Is Currently Used in Commercial Real Estate?
There are many different kinds of technology currently used in CRE, and that number will only grow as the industry expands. To start, the creation of f5G (fifth-generation wireless) allows online communication to be faster than ever. Higher data speeds allow companies to utilize the newest technology advancements as they drop.
Property technology (also known as proptech) has changed how real estate investors and professionals find properties and handle their deals. It’s a key component for managing commercial real estate. It also helps communications with co-investors and property tenants. This helps companies market and sell their properties quickly.
Another important piece of technology for property management is the Internet of Things (IoT). IoT allows sensors and other computing technology in daily objects to collect and share data. This data helps professionals make key decisions for the sake of convenience or cost-effectiveness, for example.
IoT technology includes:
- Smart lights and locks for your convenience and safety;
- Smart sensors that allow the building owner to analyze energy use;
- Tracking and monitoring can help the building manager see how the space is being used.
These and more will contribute to a growing presence of data collection technology in 2022.
How Has Technology Affected the Commercial Real Estate Industry?
In most cases, effective use of technology can save your business time and money. It allows greater communication, among both fellow employees and clients. Technology creates the ability to see the desired building whenever, even if it’s still in the development process.
Drones, virtual touring software, and Google Earth help market properties and assess the pros and cons of the property. This is especially useful since it guarantees the safety of employees during COVID concerns.
Brokers can still continue to conduct tours from their homes. Eliminating the travel time to each property can even allow more tours to be done, making the decision process even more efficient.
Digital documentation and communication simplify the process of signing the lease. With certain software, the entire process could be done from a smartphone. Making the usual tedious signing process simpler allows brokers to focus on more tasks.
Improved Property Management
Artificial intelligence (AI) has become a huge player in proptech. With the use of AI, the building functions and management systems can be easily analyzed. This is huge for streamlining property management.
With the ability of machine learning, building managers can keep track of buildings that will be up for lease and what kind of maintenance will need to be done before a lease is signed.
Virtual assistants can also be hired to streamline tasks like AI would. Ideally, they should be used to save employees from consuming all their time on long or repetitive tasks.
How Has E-Commerce Impacted the Industry?
In the last few decades, business owners have noticed a shift from brick-and-mortar shops to online shopping. COVID-19 has especially impacted traditional stores and shopping centers. However, some investors have seen that a former mall can be repurposed as an office space or another commercial project.
With an increase in remote working, the development of more office spaces is actually more necessary than you’d think. Since many have been working from home for about two years, they are noticing a crash in their productivity. The use of technology can breathe these buildings back to life if they are properly utilized.
How Can We Ensure Privacy and Cybersecurity?
Many may have concerns about cybersecurity in regards to the technological boom in the industry.
Here are some tips to keep the data of your properties and firms secure.
- Conduct a security check on your current processes and files;
- Learn the security procedures of any third-party vendors;
- Educate your employees on phishing scams and how to protect sensitive information;
- Emphasize the importance of cybersecurity.
Cybersecurity concerns will only grow as 2022 and its technology progress. Staying on top of your organization’s cybersecurity is a necessity as a result.
What Should We Expect in the Future?
Experts are predicting that the world population could double by 2050, meaning that real estate demand will certainly grow with it. We’ve only become more familiar with technology as time has passed, so by that time who knows what other advancements will be made.
Since the pandemic, many of us have realized the convenience of doing many tasks from our homes. Because of this, augmented reality and virtual reality are already pretty popular in the commercial real estate industry.
As that technology advances in the future, it’s possible that AR and VR will become even more popular for touring and examining property.
In terms of a company’s future, technology can help a business determine if they’ve spread themselves too thin and need to expand their practice to more locations. Once they do, they can speed up the training process with telecommunication after hiring new employees.