Trending Commercial Real Estate Technologies

Commercial Real Estate Technologies

The commercial real estate industry has entered a new phase of technology adoption. The focus is less and less on proving that technologies work in small-scale deployments. Instead, owners are interested in moving the needle at the portfolio level by scaling early successes with strategic rollouts.

This is easier said than done. Landlords know better than anyone that as much as they’d like to apply consistency across their portfolio, each physical asset, market and property type is different. What works in one place is not guaranteed to work somewhere else.

At the same time, solutions cannot be so broad as to be generic and lack the specific insights that drive value. One of the important lessons the industry has learned from the first proptech wave is that data is largely useless without powerful analytics and a delivery method tailored to intended users.

The industry has reached a clear inflection point from just a few years ago, when it was common knowledge that commercial real estate was behind other industries in terms of technology adoption. Now, identifying technologies that have achieved this “goldilocks zone” of a scalable platform that is still capable of targeted insights is becoming increasingly important.

This momentum is clearly building toward radical change for the industry. The decisions made in the near term will likely have profound implications on whether real estate companies are positioned to benefit from this surging growth in technology’s influence or not. The world of real estate technology is large and diverse, but owners and operators should pay attention to these three trending technologies.

1. Business Intelligence

Though commercial real estate has always been data-driven, aggregating and analyzing data at scale has been a persistent challenge, as each deal and lease has been housed on disparate spreadsheets. It’s been said time and time again: When it comes to lease and sales comps, property listing and transaction tracking, the problem is not the availability of data; it’s pulling all the separate sources into one place so it can be effectively analyzed.

In recent years, a new generation of business intelligence tools tailored to commercial real estate has cropped up to address this issue. Companies like NavigatorCRE are building incredibly flexible and intuitive platforms that can break down siloed systems, clearly visualize data and give owners and asset managers the tools they need to drive better decision making.

Aside from the sunk costs, this trend comes as a welcome relief to the companies that have spent years and millions of dollars trying to build their own internal tools, interfaces and data warehouses. Despite the resources deployed into these projects, most owners would be in a better position subscribing to a world-class data visualization platform, rather than trying to build their own.

2. Operational And Asset Intelligence

​It happens every day somewhere in the portfolio: Suddenly, a flurry of tenant complaints suddenly land on the property manager. Fortunately for most property managers, there is an experienced building engineer who they can count on to have an educated guess as to what the problem is and to begin finding a solution.

Unfortunately for owners, the skilled professionals they’ve relied on won’t be around forever: 55% of engineering managers are over the age of 55, and 86% are over the age of 45. Like it or not, the shrinking labor pool is forcing owners to find a way to do more with less.

For the day-to-day work of operating a building, data captured with sensors can unlock powerful insights around maintenance and repairs. For example, engineers can save time by maintaining equipment based on its actual usage, instead of based on a calendar date.

At the same time, the data can detect pre-failure conditions in equipment so that issues can be addressed in a proactive manner, saving time, money and tenant frustration. Going a step further, firms like ours are embedding this data within mobile apps and virtual reality, also known as “digital twins,” to enable one highly experienced engineer to effectively manage and support lower-skilled operators remotely, again saving time and money.

These solutions themselves have returns on investment of around 12-18 months, but the value goes beyond that. As the real estate owners and investors see their yields shrink due to a softening economy and increasing regulations in major markets, maximizing net operating income (NOI) and asset value through cost savings will become critical.

3. Tenant Experience

Whether with dog-walking services in multifamily apartment buildings, yoga classes in high-rise offices or even landlord-facilitated retrofits for industrial logistics centers, commercial real estate is becoming increasingly customized and experiential for the tenant.

This trend is being driven on both sides, with rising expectations in the general population that every interaction will be digital and streamlined, as well as competition among landlords to differentiate their properties in the amenity arms race. According to Colliers International, (a client of ours), in the past, approximately 3% of leasable square footage was committed to features like gyms and on-site dining. Now, it’s more like 10%.

To facilitate these amenities and help ensure that those foregone lease revenues are being made up with better retention and higher rents, companies specializing in tenant experience apps and other services have grown rapidly. Providers like Bixby and HqO offer tenants one place to pay rent and other services, access controls and visitor registration, book on-site services, order transportation and even personalize temperature and lighting controls.

Conclusion

One by one, large commercial real estate portfolios are building teams responsible for identifying and scaling technology. The difficulty of this job cannot be overstated. There are legacy systems, regionalized teams and huge amounts of unstructured data to sort through.

Fortunately, technology companies are developing solutions at a rapid pace and are designing platforms to not only provide value, but to do so for a large and diverse portfolio of assets. These “plug and play” solutions are helping to ensure that no building is left behind.

Source: Forbes

You May also Like this

Virtual Real Estate
Blockchain Technology to monetize ...

In the “real” world, has historically been seen as a viable investment....

brrrr
What is the BRRRR ...

If you're part of the business or plan on breaking into it,...

Macroeconomic
Macroeconomic Issues in Real ...

Understanding macroeconomic risk is critical to a successful strategy. While this form...

Technology
How Technology is transforming ...

Technology is constantly transforming the way we live, and the commercial real...

illiquidity premium
What is Illiquidity Premium ...

Illiquidity premium is the excess return an investor stands to earn in...

renewal
The procedure for the renewal ...

According to Section 1 of the , the law vests the ownership of...

pandemic
Post COVID-19 pandemic and ...

Adapt. Innovate. Accelerate. This is the mantra for any business right now...

Real Estate Wholesaling
Real Estate Wholesaling Pros ...

wholesaling is a kind of arbitrage in which a party known as a wholesaler...

stamp duty
The new Stamp Duty ...

Taxes are one of the ways through which the Government generates revenue...

WFH
How Work From Home ...

Google has announced that it will continue with work from home (WFH)...

Investment Portfolio
Investment Portfolio Diversification in ...

Months after the onset of Covid-19, we continue to see its impact...

path of progress
What is path of ...

As a , you may have heard the term path of progress before. The...

Virtual Real Estate
Increase of Virtual Real ...

Prospective buyers getting their first glimpse of potential homes through smartphone cameras...

Property Managers
Operational Guidelines Property Managers ...

The pandemic crisis has thrown nearly all industries for a loop, and...

Commercial real estate
The Effect of the ...

The real estate industry is changing, a change that started before the...

Disruptive Real Estate
Disruptive Real Estate and ...

What do Google, Microsoft, Facebook, Twitter, Visa and American Express all have...

Post-Pandemic
Outlook of Post-Pandemic Commercial ...

The COVID-19 pandemic is having a transformative impact on (CRE) markets. The...

invest in real estate
Reasons you should Invest ...

Your current financial stability doesn’t guarantee that you’ll be free from financial...

Retirement
Real Estate Investments for ...

Real estate can be an incredible tool to help you prepare and...

Real Estate Industry
Tips to better understand ...

If you're looking to buy or sell property, it's important to have...

Real Estate Investment
Ways of getting involved ...

While many people get involved in real estate to generate a return...

value
How to assess the ...

If you’re investing in property, you’ll need accurate real estate valuations to...

Real Estate Investors
Guiding Principles for Real ...

While the national faces significant uncertainty right now, it's important to recognize...

Real Estate Investing
The largest benefits of ...

Real estate is one of the best possible ways to drive personal...

The Real Estate Market
How the Real Estate ...

If you're looking to buy or sell property, it's important to have...

Remote Working
Remote Working and its ...

Many ask if the remote working culture will be here to stay,...

buying and selling
Real Estate Buying and ...

EASTON — agents and their colleagues have adapted quickly to the new...

unstable market
Investing in Real Estate ...

The industry is filled with its share of ups and downs. In...

real estate investments
Real Estate Investments to ...

There are several types of real estate , but most fall into...

office space
Will the Pandemic make ...

A myriad of publications have already pronounced office space a trend of...

How the pandemic will affect Resident Demands in the future
How the pandemic will ...

The current pandemic and global response is a once-in-a-lifetime event that has...

real estate stock market
The effect of Real ...

Financial market commentators tend to focus on the price of bonds and...

digital asset
How Real Estate is ...

Yesterday, I had a call with one of my company’s larger customers....

Real Estate Agents
Ways Real Estate Agents ...

There is a reason companies like Tesla have such a loyal customer...

Operational Real Estate
The importance of Operational ...

New York, NY—With the shift towards buying an experience over buying a...

Passive Income
Ways to Earn Passive ...

Passive income is an important factor in building wealth and achieving financial...

millennials
The Future of Real ...

We've all seen studies on millennials circulating around the internet. As the...

land
Things to consider before ...

Looking to buy land to build your dream home? Land is the...

Angel Investing
Angel Investing versus Real ...

I’m often asked what my preference is when comparing angel investing to...

Bitcoin Investment
The comparison of Real ...

Two popular avenues, real estate and bitcoin, have been making waves in...

mortgage
How to find the ...

If you’re looking to buy a home or in a single family...

Reserves
The importance of Reserves ...

Private real estate affords investors considerable control over their , from how...

attorney
The importance of an ...

Engaging the right attorney helps you avoid costly mistakes in deals. Especially...

bundle of rights
The comparison of bundle ...

What is “,” really? Most people might say it's the land and/or...

Lagos State Real Estate Law
Laws guiding the Use ...

The regulatory bodies in real estate include but are not restricted to the following;...

Commercial Real Estate Tech
2020 Top Commercial Real ...

Deloitte’s 2020 Commercial Real Estate Outlook surveyed 750 owners, operators and investors in 10...

Mortgage notes
Guide on investing in ...

Most new investors in active real estate start with a traditional method...

real estate rehab
Stages of Real Estate ...

If you play your cards right, rehabbing houses can be very rewarding...

Multifamily
Investing in Multifamily Real ...

Millions of Americans depend on cash flow generated by long-term investment portfolios,...

ways to invest in real estate
Ways to invest in ...

There is a common misconception that real estate investing requires property ownership....

rental properties
Pros and Cons of ...

Many investors understand why they should invest in real estate for the...

urban regeneration
Planners urge Lagos State ...

Planners have charged the Lagos state government to do more detailed master...

Real Estate Location as a franchisee
Tips to secure the ...

Real estate site selection has the power to make or break any...

Remote Workers
How Remote Workers affect ...

As more people are able to work from home, housing priorities have...

5G Technology
5G Technology REITs

There is a revolution going on. You’ve probably heard the term 5G...

buyers
Questions Home Buyers should ...

Buying a home is one of the most expensive decisions you'll ever...

remodeling
Mistakes to avoid when ...

Americans are spending less on home renovations than they were at this...

Real Estate Market
Reasons for investing in ...

Are you thinking about purchasing your first piece of real estate? Investing...

real estate funds and REITs
Differences between real estate ...

Are you ready to invest in real estate? Real estate funds and real...

Real Estate Technology
Investment in Real Estate ...

Investment in technology for real estate, also known as “proptech,” has seen...

Agents and Brokers
Differences between Real Estate ...

Real estate transactions often involve significant amounts of money. As a result,...

real estate crowdfunding
Real Estate Crowdfunding Investment

Ask a rich person how they got rich, and there’s a good...

Investing Real Estate Market
Investing in the right ...

Investing in real estate is tremendously exciting, and can be very lucrative....

housing in Nigeria
FMBN to build 100 ...

Ahmed Dangiwa, Managing Director, Federal Mortgage Bank of Nigeria (FMBN), said the...

local real estate market trends
Factors that determine Local ...

Real estate markets trend between times of boom and bust, depending on a...

real estate technology
How Technology is Transforming ...

It’s 2019, and the pace of innovation across industries is accelerating at...

invest in real estate
Affordable ways to invest ...

Real estate can help diversify a portfolio. One way to grow your...

real estate digital finance
8 top concepts of ...

In all history there has never been a more profound era of...

appraisal services
Why you need appraisal ...

Real estate investing can be an excellent way to earn passive income....

Real Estate Investment
Determining your Real Estate ...

Malcolm Gladwell states that it takes 10,000 hours of practice to become...

real estate agent
12 Qualities in Selecting ...

Purchasing a home is a huge financial commitment, so finding the right...

National Urban Development Policy
Revision of the National ...

The long-awaited overhaul of the National Urban Development Policy (NUDP) has been...

Warehouse
Capitalizing on the Warehouse ...

Everyone knows that retail is evolving, and common thought says that retail...

Mixed-Use Real Estate
Benefits of Mixed-Use Real ...

In cities, mixed-use real estate is hidden everywhere. Someone likely lives above...

dead capital
Real Estate Dead Capital ...

PwC estimates that Nigeria holds at least $300 billion or as much...

Blockchain Technology in Real Estate
The effect of Blockchain ...

Since the recession, the commercial real estate industry has experienced exceptional growth....

Post your Comments

NAME *
EMAIL *
Website

error: Content is protected !!
%d bloggers like this: