Technology is having a transformational impact on all industries, and the commercial real estate sector is certainly not an exception. Thanks to new and emerging property technologies (PropTech), the industry is rising to the new challenges brought on by the ongoing supply chain crisis, labor shortages, and the changing needs of buyers.
But what are these technologies? And how are they impacting the different aspects of the commercial real estate industry?
Learn more in the guide below.
Building Information Modeling
Data-rich 3D Building Information Modeling (BIM) is only one of the construction technology trends set to dominate the industry, but it is perhaps the most impactful one.
Thanks to ad hoc BIM solutions, companies in the industry are now able to gain unprecedented insights into each project from the pre-construction stage, which gives them the ability to make better business decisions, avoid costly mistakes, and build smarter buildings.
Blockchain
Blockchain-based technologies are redefining how commercial properties are sold, bought, and traded. Decentralized digital ledgers can make transaction records immutable, impossible to tamper with, and publicly accessible, thus reducing the need for cumbersome legal and bureaucratic processes.
What’s more, other technologies powered by underlying blockchain infrastructures, such as NFTs, the Metaverse, and cryptocurrency, have already begun showing their potential to streamline property transactions.
Big Data
Big Data, or large datasets exponentially growing over time, is at the core of most PropTech solutions propelling the commercial real estate industry into its digital future.
Thanks to Big Data, companies are able to improve their business decision-making, gain access to emerging market trends, boost the safety and efficiency of buildings, and elaborate demographic insights to boost sales.
Virtual and Augmented Reality
Virtual and Augmented Reality are now present in multiple aspects of the CRE industry. For example, BIM solutions rely on VR and AR to deliver immersive models that can be explored in detail by construction managers, designers, and architects.
And, in the field of real estate marketing, brokerage, and sales, VR and AR experiences can help build buyer conferences and close off-plan sales. When coupled with drone footage, these technologies can also play a role in maintaining commercial buildings safe, compliant, and energy-efficient.
CRE Automation Software
When looking at the most significant challenges the CRE industry faces today, it becomes evident that labor shortages represent the biggest threat to the sector.
However, new automation software can help CRE businesses deal with the lack of trained talents in multiple aspects of the industry, from property development to the marketing and management of the commercial real estate.
For example, real estate data platforms such as Northspyre can deliver high-quality data, automate resource-intensive processes, and support more intelligent decision-making.
Artificial Intelligence
AI-powered platforms and software are not just essential to interpret Big Data and large datasets.
Supporting Computer Vision, Machine Learning, and natural language processing (NLP), Artificial Intelligence can resolve inefficiency in CRE, generate better leads, improve marketing efforts, streamline real estate transactions, reduce risk, and lead to better investments.
Internet of Things
IoT devices have become widespread over the past years, and their growth isn’t bound to slow down.
In the CRE industry, IoT can be efficiently used in creating smarter commercial spaces, boosting energy efficiency, delivering virtual tours of properties to prospective buyers, and offering more accurate information about a certain building or asset.
Insurtech and Loan Modeling
Insurtech technologies and AI-based loan modeling are helping the CRE industry overcome the obstacles associated with ensuring that buyers have access to needed funds.
Today, the long waiting times and cumbersome bureaucratic processes associated with obtaining a loan are among the main culprits behind deal fall-throughs. Thanks to new Insurtech platforms, prospective buyers can now access tailored financial products online and in just a few hours, thus streamlining the property transaction process.
The Rise of PropTech
Since most of the PropTech tools out there today are still in their infancy, it is impossible to foresee what their future impact on the industry will be where real estate technologies are concerned.
Nonetheless, from helping the sector cope with today’s challenges to establishing the foundations for greener, safer, and more efficient buildings, technologies such as blockchain, AI, IoT, and Big Data have already become irreplaceable pillars of the commercial real estate sector.
