Technological innovation brings along with it new ways to deal with old problems or issues. They make things easier for all. However, the real estate industry has been more resistant to technological change than other industries. But with so much at stake—$54 trillion globally—the first firms to break through with leading-edge technology can gain a fortune. Technology solutions in commercial real estate will provide a competitive advantage include predictive analytics, smart building hardware, and the Internet of Things.
The Internet of Things (IoT)
No discussion about the future of real estate technology can begin without mentioning the Internet of Things or IoT. The technology works thanks to smart sensors and devices that communicate with each other through cloud computing. While smart gadgets make home life certainly easier, people have no idea how technology is changing commercial real estate. This system is going to change how we design, use, and maximize the efficiencies of buildings. In the future, if a building encounters an issue, a signal will be communicated to a management center where a work order will be generated automatically; no need to manually call a technician. Clients will be better able to manage their capital and spend as the predictability of equipment replacement will be easier to monitor, by using sensors on commercial boilers for instance.
One of the major technology solutions in commercial real estate is predicting what’s to come. Knowing what the future holds is a dream of every investor. Amazingly, predicting what lies ahead may not be a fantasy for much longer. Predictive analytics can be cleverly used by real estate professionals to decide on the next big investment project. By analyzing information from several data points such as workforce trends, demographic patterns, and the cost of capital, a broker can much more easily convince a commercial real estate firm that a building will work well in their portfolio. As predictive analytics advances, professionals will be able to apply this technology to different locations; not just their own backyard. Also, before an investor makes a decision to buy office space, he can gain knowledge of future rental rates in many competing areas to make a more informed decision.
Real-Time Market Comparable
Real estate market, like any other market, is dependent on many things. Even though it doesn’t fluctuate as sudden as others, real-time market data is still invaluable in determining its course. Companies like Compstak are leading the way when it comes to ‘live data’ for commercial real estate. Investors can easily track competitors, discover undervalued assets, build bespoke market reports, spot acquisition opportunities, and model future trends. Technological advancements will transform investors into omniscient buying machines where no purchase is left to intuition.
Networks for Office Space
The use of office space has historically been inefficient. New options are available today to connect individuals with a broad network of office space suppliers. Even if you are a two-person practice that needs just four hours of office space per week, that is now possible and landlords can aim to get full occupancy for their buildings. The leading companies in the sector offer real-time space availability in a flexible marketplace, reducing the costs and challenges that come with traditional leasing. The demand for flexible, temporary, and cost-cutting corporate leasing is growing, and companies like Bproperty.com welcome the tech advancements that meet this new office space dynamic.
Technology solutions in commercial real estate like Deep learning promise to change CRE in a dozen ways. Among them, the one that will save time and cost is a data platform which will support the lease completion process, allowing firms to be compliant with their country’s accounting standards in the easiest possible way. As a result, artificial intelligence will help at every stage of the sales process. Experienced professionals will have the data to make educated assumptions about their clientele and the market. They will know the best time to send an email or make a call, or what tone to use with each customer. It might take a lifetime for an agent to learn the nuances of each particular market, but a machine can process reams of input data in seconds. The machine will be an agent’s loyal servant in the future.
Technology is ever-moving and ever-growing. What might seem impossible today may one day become a walk in the park. Many things can be achieved in the world of commercial real estate with the help of the above-mentioned technologies. And we eagerly wait to see what technology solutions in commercial real estate will deliver.