How Technology is Evolving in Commercial Real Estate
Technological innovation has dramatically impacted the commercial real estate industry with sweeping changes that many commercial real estate firms have been measured in their acceptance. Perhaps no commercial real estate sector has been impacted more by the evolution of technology than retail, e-commerce, and online shopping. In fact, e-retail sales totaled over $409 Billion nationwide in 2017. E-retail sales are forecasted to reach $603.4 Billion across the globe by 2021.
Mobile devices have enabled people to work from nearly anywhere which has impacted the way people conduct business, live, and shop for goods/services. A recent study has revealed that over 86 million Americans use their smart phones for online shopping. However, many customers prefer the in-store shopping experience. Thus, retailers are enhancing their in-store technology to improve the experience for their customers. For example, several retailers including Home Depot and Lowe’s have invested in in-store navigation apps. Additionally, consumers try to avoid the long checkout lines by paying with their mobile apps in-store.
With the greater use of technology in the commercial real estate industry, the traditional ways of conducting business are rapidly shifting. Typically, commercial real estate firms have been slow to adopt technological advances in the industry. Below are a few of the major technologies impacting commercial real estate:
- Virtual Property Tours – Although VR has existed for decades, the commercial real estate industry has recently seen a relatively greater adoption in the business. Virtual property tours are enhancing marketing of properties to grasp prospective Buyers and Tenants attention. VR combines photos and videos, allowing users to navigate through floor plans digitally. VR has also impacted building management and maintenance.
- Commercial Real Estate Tech Tools – Commercial tech tools are revolutionizing the commercial real estate industry. Information was once limited to brokers for a fee but is not accessible by the general public, and often times for free.
- Websites are allowing prospective Tenants, Investors, Landlords, and Developers the ability to browse through online material to dramatically expand their search capabilities.
- In an effort to assist Landlords and Brokers acquiring more Tenants, leasing and asset management platforms have been created to centralize data and work flows.
- Increasing Use of Data - The increasing use of data is yet another trend in commercial real estate. CRE mapping tools provide in-depth spatial information, as well as data on demographic and economic trends and environmental insights. Several companies allow users to create maps and analyze demographics, consumer spending, market potential, etc.
- Software for Managing Closings and Transactions - Online, cloud-based platforms are streamlining closings and transactions. Today, there are many platforms on the market that streamline the closing process, while maintaining security and compliance with federal and state laws. These platforms allow all parties to collaborate and track their progress throughout the closing process. Additionally, online closing software’s allow the closing to occur digitally.
The experienced team of commercial Advisors at Verani Realty possess strong local market knowledge and are committed to utilizing technology to best serve our clients. With more than 50 years’ experience in the industry, the commercial division delivers positive results and enhanced value for our clients through a diversified operating platform designed to create, enhance and preserve the value of real estate assets throughout northern New England.
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