Every day, it seems like there’s a new technology that’s guaranteed to make our lives easier and better. Sometimes, it seems impossible to keep up with the speed of technological innovation. One possible reaction to all these innovations is feeling overwhelmed. Another reaction is to try to adopt every single new technology ASAP. However, a more reasonable approach to changing technologies is simply being prepared.
At CXRE, we’re here to inform and make you aware of technology trends in commercial real estate that may soon affect you. In this article, we look at several changes in commercial real estate technology that are changing the commercial real estate industry.
- Property Values in Relation to Tech Innovations
- AI (Artificial Intelligence)
- Updated Infrastructure
- E-Commerce as a Commercial Real Estate Disruptor
- Privacy and Cybersecurity
- Social Media
- Sustainable Technologies
- High-Quality Data
- A Word of Caution
- Up-to-date Solutions for All your Commercial Real Estate Needs
Property Values in Relation to Tech Innovations
These days, everyone expects a minimum level of technology. For example, people expect free WiFi in public spaces such as office buildings, airports, even public parks. As a result, developers and property owners incorporate as much technology as they can into properties. Therefore, the value of a property is increasingly tied to the level of the commercial real estate technology it provides for both tenants and customers.
Commercial real estate professionals have always been mobile. Traveling from their office to various properties and back is routine. Yet today’s technologies now allow agents and brokers to have even greater mobility. Whereas before, commercial real estate professionals needed to spend a certain amount of time on the road, now, these same agents can work remotely. For example, viewing properties from a distance has never been easier. And with today’s secure technologies, sending and signing documents has never been as easy as it is today.
AI (Artificial Intelligence)
Another of the growing technology trends in commercial real estate is Artificial Intelligence (AI). Smart tools and machine learning are already changing many industries. For instance, some companies already use AI for marketing purposes. Yet for commercial real estate properties, AI has several extremely large benefits.
Regarding property and facilities management, AI can help with tasks like analyzing building functions and layouts, systems management (HVAC, lighting, data systems, etc.), and organizational tasks. By using AI, property managers can further streamline chores like safety, security, and efficiency. And for commercial brokers in the near future, AI could help with generating leads and prospects.
These days, people have higher technological expectations. Due to our ever-increasing digital connectedness and the IoT (internet of things), everyone expects a minimal level of technology. However, the ‘minimum’ amount of technology that people expect to find in a property increases each year.
Investors and prospective tenants in an office building, medical office, retail space, or other commercial properties want the best technologies that they can get. As a result, commercial properties must keep pace with evolving technology. For example, owners of older properties may need to invest significantly in power, cabling, and other infrastructure projects to keep their properties desirable. Otherwise, outdated properties may languish on the market.
E-Commerce as a Commercial Real Estate Disruptor
Without a doubt, the e-commerce revolution continues to disrupt the retail landscape. Specifically, changes in consumers’ buying habits have affected the commercial real estate industry, both negatively and positively. On one hand, some retailers have shuttered many brick and mortar locations. However, the change benefits the industrial warehouse sector. Regarding technology, commercial real estate technology has adapted, causing a minor revolution in warehousing in relationship to retail. So not only is there a greater demand for industrial warehouses, but there is also a great demand for high-tech solutions in these properties.
Privacy and Cybersecurity
Sadly, cyber hacks have become a major concern for everyone. This is especially true when doing business. The commercial real estate industry works with large amounts of digital tenant and property data. Combine this with the IoT, mobile apps, and digitally-based solutions, it is crucial that cybersecurity in commercial real estate be top-notch. After all, no one wants to get a message from their landlord, property manager, or broker stating that their sensitive information has been compromised.
Over the past decade, a strong social media presence has become a requirement for doing business. Also, it has become a necessary commercial real estate technology. Whether it is a Facebook page, Instagram feed, or Pinterest board, prospective investors and prospective tenants are interacting with brokers and properties via social media. Not only is social media a marketing tool, but it is also a way to encourage greater connection between people.
Energy efficiency, water efficiency, solar power, green roofs, and other sustainable technologies are already important to the commercial real estate industry. For investors, owners, and building managers, these technologies will become even more important in the years to come, as a prospective tenant’s decision about leasing a property could hinge on these amenities (or lack thereof).
In today’s world, we have access to huge amounts of data. In general, data gives better insight into properties for the commercial real estate business process and leads to more informed decisions. This data might include data captured by a property manager from building operations via smart systems. At the same time, it could include data purchased from a third-party regarding properties, submarkets, or neighborhoods.
For prospective buyers and tenants, this data informs their buying and leasing choices. For property managers, data helps them to better manage their properties. At the same time, brokers need to stay on top of the latest data for their own sake and the sake of their clients.
A Word of Caution
One of the unfortunate side effects of technology is the increased impersonal nature of business transactions. People on all sides of transactions – owners, brokers, tenants – appreciate the ‘personal touch.’ No matter what you’re role is in commercial real estate, it’s beneficial to remember that deals happen between people, not machines. In the end, the world’s greatest innovations can’t deliver face-to-face service that people want. Furthermore, having all the latest and greatest technologies can never be a substitute for authentic interactions.
Up-to-date Solutions for All your Commercial Real Estate Needs
These days, technology advances at breakneck speed. For some people, the ever-evolving technological landscape is frightening. Yet it doesn’t need to be scary. In the commercial real estate business process, commercial real estate technology is a means to an end – serving commercial real estate investors, owners, and tenants.
At CXRE, we embrace commercial real estate technology. What’s more, we use the most up-to-date solutions to help our clients find, lease, and maintain commercial properties in Houston, Dallas-Ft Worth, and other major Texas markets. What’s more, we never use cookie-cutter solutions, but tailor-make plans to your needs. Our team of professional real estate experts is always ready to answer your questions about to assist with all your commercial real estate needs. Our services include property management, leasing, and broker services.
To learn more about commercial real estate technology and what the CXRE team can do for you, contact us today.