CRE Tech: How the Tortoise Is Gaining Ground
The old fable of the tortoise and the hare may be playing itself out in the real world of commercial real estate tech. Where other industries have surged ahead with implementing new tech into customer experience, business growth, and automation strategies, the industry of commercial real estate for many years has lagged behind. Remember, however, that the tortoise saw the backend of the hare for a short time until the tortoise methodically advanced to the finish line first. For those in support of team tortoise, here are some examples of how commercial real estate is gaining ground to adopt new technologies.
CRE Tech in Property Development
Virtual reality has permeated many industries like entertainment, education, health, and military training. Due to its ease of use through web apps, mobile devices, and email, virtual reality is now enabling owners, brokers, and tenants to see a building space and various design and construction plans from anywhere around the world. In turn, this technology can bring together critical team members to make important decisions and expedite the development process, as Bisnow.com points out. Michael Schroeder of SGA Architecture explains, “The technology allows the process to move forward at a quicker pace, enabling crucial decisions to get the consensus response they need. It’s a vital step in saving time for all parties involved.”
CRE in Marketing
The implementation of virtual reality technology in the CRE industry also aids in marketing properties. For instance, with new construction and redevelopment of existing sites, VR provides a platform for clients to experience a new design as they could have only imagined it from 2- or 3D drawings otherwise, all viewable in an immersive experience. Even complex design concepts can be translated into a palatable presentation for all audiences using VR tech.
In addition, CRE professionals are increasingly turning to drones to capture high quality photos and sweeping videos of properties. Where once an expensive helicopter ride was necessary for such a feat, drones are becoming the preferred way of providing a bird’s eye view at any height.
CRE Tech in Risk Mitigation
One of the single determining factors of portfolio value is risk mitigation. As one strategist from Centerstate Bank explains, “Making sure lease risk is taken into account, is one of the best ways to mitigate this future risk.” While a property can show a high occupancy rate, the value of the asset can be significantly altered by the instability of its tenants, and vice versa. Utilizing real-time data analysis with industry-specific performance indicators can facilitate CRE professionals in mitigating the risk of their commercial properties. (RE)meter’s has witnessed many portfolio transformations due to their TIL Score Report aiding in the mitigation of commercial risk.
Looking into the future, another tech development is beginning to surface for commercial real estate transactions to be streamlined and more secured. The International Blockchain Real Estate Association is already devising potential solutions to utilize Bitcoin transactions, pointing to a time in the near future when blockchain will finally grab the industry, according to Wired Score. In addition, CNBC recently reports of how AI and self-driving cars may soon be changing the face of real estate. It seems the tortoise may be finding its way in CRE tech.