How Technology is Shaping the Future of Commercial Real Estate

You’ve already seen how technology changed how people find their next home.

The option to spend your weekends at many open houses is still there – and fun! But you don’t always have to go look in person unless that is your thing, as apps like RedFin and Zillow offer the convenience of virtual tours. In addition, these platforms let you in on each listing’s details, from room sizes to annual property taxes. You can also set up alerts for the types of properties you’re interested in and for specific homes that catch your eye.

In short, you don’t necessarily need to work with a real estate agent to start your search. Some of the same tech-infused ideas are also changing the future of commercial real estate, particularly for investors. Smart buildings, Proptech, AI-driven analytics, and blockchain are stepping in to influence how investors secure and manage their properties. Ready to learn more? Let’s delve into how technology is transforming the commercial real estate industry.  

Data Analytics Streamline Valuable Insights

You don’t want to make the wrong moves regarding your investments. Buying a stake in underperforming commercial properties isn’t always a poor choice if you can reasonably turn things around and make a profit. The key is reasonable – you look at all the data has to support and the feasibility of pulling off an eventual win.

You can gather the information you need yourself or you can let AI-backed tech do the heavy lifting. The manual gathering and analysis process isn’t known for its efficiency. Plus, you might miss a few crucial details, which could lead you down a less-than-ideal road. AI can process more data faster while showcasing the bite-sized insights with the most impact.

Whether you’re evaluating your next deal on an office building, a shopping center, or a mobile home park, data analytics change the game. You have the power to make more informed decisions for the immediate and long-term future. When it comes to investing in commercial properties, including mobile home parks, Lifestyle Investing expert Justin Donald says, “Use technology to your advantage.”

Justin also says “Automate as much as possible. You’ll have more time to focus on finding deals and managing your properties. And you can streamline your business operations.” Collating and analyzing a property’s data is a time-consuming task. Technology lets you make the best decisions for your portfolio efficiently and often with greater accuracy.

Smart Buildings Enable Remote Property Management

Do you have a smart thermostat installed in your home? Maybe a security system you can monitor from an app on your phone when you’re away? If so, you already know the value smart technology and IoT devices can bring.

Imagine if an entire commercial property you’ve invested in was equipped with this type of tech. It’s known as a smart building, something you can monitor and manage remotely. While not all commercial property investors are involved in on-site management, those who are can expand their reach with IoT devices.

No, you can’t fix a water main break or that parking lot sinkhole from far away. But, you can get alerts about failing HVAC systems and potential security breaches. It’s easier to fix a problem in its early stages than when there’s a complete breakdown. Smart buildings also enhance the tenant experience with more proactive maintenance and safety.

In addition, IoT devices use real-time data to adjust conditions like room temperatures and lighting. The technology boosts energy efficiency, cutting down on unnecessary costs for property investors. Furthermore, real-time adjustments cater to immediate tenant needs and may reduce calls to onsite maintenance staff for minor requests.

Virtual Reality Opens Doors

Investment decisions can’t be made with spreadsheets alone. You need visual cues, something you normally get from physically being on a property’s site. If the building’s already there, you want to inspect and walk through it. Say your potential investment is in the planning stages. Well, you at least want to check out the site where the building will go.

It helps to see the neighborhood and which site characteristics will enhance the property’s market value. Yet, if the properties aren’t located close to home, you’ll incur travel expenses to see them. With virtual reality, you don’t have to.

It’s possible to check everything out from wherever you happen to be. You can get a sense of the investment’s visual appeal through virtual tours. Virtual reality is also a way to show properties to other investors and prospective tenants.

They can see the attractive features of specific units, whether they’re office spaces or storefronts. You could enable virtual tours for your mobile home park, especially if you decide it’s time to sell. With technology, you’ll open up more possibilities by attracting tenants and investors, who may be from other areas. As a bonus, you’ll eliminate the need to travel to the property to facilitate a new business relationship.

Blockchain Technology Expands Efficiency and Opportunity

To complete a real estate transaction, you need a real estate agent, a broker, a bank, and sometimes a lawyer. There are a lot of people in the middle, including title companies. All these intermediaries increase the fees involved in completing transactions. Furthermore, intermediaries can reduce efficiency by increasing the need for additional paperwork.

Simply put, you’re dotting more I’s and crossing more T’s. Blockchain technology decentralizes transactions by eliminating the need for all the people in the middle. Transactions become automated, boosting efficiency and mitigating the chance of mistakes. The more cooks you have in the kitchen, the more likely the recipe won’t come out as intended.

Blockchains reduce those risks while maintaining security. The buying, selling, and ownership transfer process still goes through with transparency. If anything, the technology has the potential to reduce fraud. Fewer people have access to sensitive data from buyers and sellers.

Speaking of buying and selling, blockchain technology also enables fractional real estate ownership. As a commercial investor, you don’t have to go all in. You can partially invest in properties, reaping the benefits of a more diversified portfolio. No more having to cough up the financial resources for the full cost of a property. Blockchains make it possible to invest with fewer resources instead of losing out.

Reshaping the Future of Commercial Real Estate

Technology has touched most industries, including commercial real estate. The changes various tech platforms and resources are ushering in provide investors with more flexibility. Simultaneously, commercial real estate investors gain conveniences, operational efficiencies, and opportunities. Technologies like AI-driven data analytics are making the future of commercial real estate brighter. More than ever, it’s now possible for anyone to get into the game.