The Role of Technology in Transforming Commercial Real Estate

Technology has dramatically impacted nearly every industry, and commercial real estate (CRE) is no different. From property management, to interaction with tenants, data analysis, and much more, the cutting-edge edge of innovative solutions is changing the very nature in which CRE professionals operate their business. Staying on top of such changes can help win competitive edge as well as make business easier.

As Dov Hertz, a very respected NY developer puts it, “Technology has been pretty productive for commercial real estate.” By embracing innovation, property managers and investors make more informed decisions, hence optimizing performance in their portfolios. Let us get closer to the details on how technology is impactful to the CRE industry and what benefits it offers.

  1. Smart technology for property management

One of the biggest technological innovations in commercial real estate has been smart property management tools. Maybe, possibly, these are BMS, which will be able to monitor, real-time energy consumption, the HVAC systems, lighting and security features. The addition of the Internet of Things can help property managers automate building functions and collect valuable information in order to optimize performance.

IoT technology does not only improve tenant comfort but also reduces costs of working. It helps property managers to identify data patterns for proactive improvement of energy efficiency. According to Dov Hertz, “smart building technology is a game-changer for reducing expenses and maintaining high tenant satisfaction.

  1. Predictive analytics in data-driven decisions

In data analytics, technology has also transformed the CRE industry. Gleaning from huge amounts of data helps CRE professionals understand the trends that prevail in a given market, the tenants’ preferences, and how properties are performing. This predictive analytics lets investors predict demand, identify emerging markets, and take strategic decisions informed by real-time data.

According to Dov Hertz, “data is the new gold in commercial real estate,” and with its help through predictive analytics, investors can make decisions that were previously impossible. Using data lets investors reduce their risks and maximize investment opportunities based on market conditions, thereby leading to a more secure and profitable investment strategy.

  1. Virtual Reality and Augmented Reality in House Tours

These two technologies-Virtual Reality (VR) and Augmented Reality (AR)-are increasingly used in CRE for property tours as well as the leasing process. With VR, potential tenants can view a property from anywhere in the world without having to make an on-site visit. AR allows users to see how a space would look with different layout or design features.

Another is the saving of time, with the number of possible tenants that will see the properties opening up into an infinitely wider pool, and according to Dov Hertz, “Virtual property tours is one of the most valuable tools for especially in these global markets wherein clients may not have the ability to actually go and see the space.” VR and AR make the leasing process less cumbersome, bringing into the scheme a seamless tenant-landlord experience.

  1. Blockchain and Smart Contracts for Secure Transactions

Commercial property is therefore slowly seeing the utility of blockchain technology for the security and transparency in transactions. Smart contracts, which constitute self-executing contracts where the terms of operation are directly written in code, are a secure method of transaction without the need for an intermediary. These reduce the risk of fraud and speed up the closing process. Blockchain also allows decentralized record-keeping, which provides an immutable record of all transactions. Dov Hertz believes that “blockchain technology holds the potential to revolutionize how we administer real estate deals, ensuring greater transparency and security”. In fact, the effect of technology on commercial real estate is increasingly developing. This includes intelligent management and analysis of data about properties and extends as far as blockchain. That technology changes the CRE business nature. According to Dov Hertz, “those who will stay on top of this trend will lead in today’s competitive real estate world.” The embracing of property managers and investors into technology helps optimize its operations, provides better tenancy experience, and ensures long-term growth.

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