Technology is drastically changing all industries, and the commercial real estate landscape isn’t an exception. New and emerging technologies are supporting the automation of labor-intensive processes, providing more accurate data, and assisting in strategic decision-making.
While the full potential of new technologies such as blockchain, NFTs, IoT devices, and AI is yet to unfold, the impact that they have already had on all aspects of the CRE industry is undeniable.
Learn more about the transformative power of automation in the CRE industry below.
With consumer prices and inflation rates rising at a vertiginous pace, businesses in any sector are racing to introduce solutions to decrease overhead costs and provide added value to the users. And, in this rally, automation is playing a critical role.
As Northspyre points out, emerging technologies such as blockchain – and the level of automation they enable – have a deflationary effect, allowing companies to decrease the costs related to labor-intensive processes and operate at maximum efficiency.
What’s more, automation supports the flexible scaling of operations without the need for significant investments in facilities and human capital. In turn, this allows players in the CRE industry to enhance their returns, hone their competitive edge, and ultimately protect themselves against the risks of an inflationary period.
Real estate transactions have historically been highly complex, bureaucratic, and, more importantly, prone to human error. The lengthy processes involved with closing CRE deals cause a domino effect that often slows turnover and impacts the consumer experience.
Thanks to new technologies such as Non-Fungible Tokens (NFTs) and digital twins, real estate transactions can now be completed virtually and in real time, and ownership can be transferred without the risk of errors or delays.
Marketing costs often account for a significant portion of the budget for most companies operating in the commercial real estate market. After all, while the industry is booming, competition has never been fiercer, and it has never been more important for companies to close deals quickly and advantageously.
Thanks to marketing automation and accurate audience data, companies can reduce the costs associated with advertising new properties on the market and create laser-targeted marketing campaigns.
According to estimations by Redfin, the percentage of fall-throughs reached a staggering 14.9% in June 2022, the highest level of deal cancellations since the beginning of the Covid-19 pandemic.
And, while economic uncertainty played a significant role in the increase of fall-throughs, one of the main reasons why such a high percentage of deals fail is the inability of buyers to secure the necessary funding.
Luckily, the advent of AI-powered platforms is changing this trend. AI solutions can more accurately calculate risk for lending institutions, grant approvals in real time, and design loans more tailored to the borrower’s needs.
But buyers and banks aren’t the only parties who can benefit from the use of AI platforms. Indeed, for the commercial real estate industry, fairer and more accessible loans help buyers go ahead with a real estate property deal, thus boosting turnover and efficiency.
IoT devices, coupled with technologies such as VR and AR, provide assistance at all stages of the planning, construction, management, and advertisement of commercial real estate properties.
Thanks to these new tools, commercial real estate agents can provide prospective buyers with more accurate information about the building they are investing in, as well as its energy efficiency level, safety, and market value, thus boosting the chances of a successful deal.
Additionally, construction companies and designers can prevent costly mistakes and safety issues, and property managers can automate compliance and safety checks.
The commercial real estate industry is changing at lightning speed, and it has become all the more difficult for companies operating in the sector to highlight and forecast emerging trends.
However, new technologies, such as CRM and commercial property management software, are now automating labor-intensive aspects, such as data collection and entry. In turn, this gives commercial realtors and property managers the ability to focus on more strategically-important aspects of their business.