As with any industry, technology changes and shifting trends affect the future of commercial real estate (CRE). Businesses adjust their output or workflow based upon trends. This can be advantageous to innovative real estate professionals and intimidating to those too used to the status quo. At some point, every radical change in the real estate industry was just a new trend before the practice became commonplace. If property owners and real estate professionals want to remain relevant and satisfy market demands, they must keep abreast of these shifts in how, or even where, business is done. Here are some of the tech advancements and trends that are certain to affect the CRE industry now and in the future:
PropTech/CRETech And Blockchain
Real Estate is one of the oldest industries in this country and it can be a bit overly traditional and antiquated at times. “Why change what works,” some would ask, but the digital age and the demand for technology is changing every industry from top to bottom. Enter Proptech/ CRETech, which is the catch all term for technology and shifting ideas about real estate that incorporate technologies to improve customer experience while bypassing traditional holdbacks. For example, where an abundance of information was once limited to broker knowledge that costed professional fees, websites and apps like VTS Or DealX are allowing tenants, landlords, and even industry professionals to bypass traditional barriers and obtain information like listings, workflows, and relevant market data. This technology increases transparency, which is great for some professionals and terrible for others in the CRE industry.
Blockchain is another new technology that everyone seems to be talking about which is shaking up the CRE Industry. Basically Blockchain is a mechanism the allows all people across a transaction to share data and information in an encrypted format that prevents tampering, keeps records safe from physical harm, and automates transactions to eliminate administrative costs. It’s streamlining the process while at the same time making the entire process more secure for all parties.
AI is changing a lot of industries for the better and commercial real estate can benefit from AI integration perhaps more than many others. From boosting productivity, to search engine utility, to creating and processing important documentation, automating with artificial intelligence will save time and resources across the board.
A major shift in the future that will drastically affect CRE specifically is the advent of autonomous vehicles and smart car technology. So much space must be dedicated currently to parking and vehicle storage that could potentially change with automated vehicle use. With automated vehicle technology driving people, the housing desires and eating habits of people will certainly change, boosting certain industries and creating exciting opportunities for commercial real estate developers.
Perhaps the most “futuristic” development on this list is the creation of smart cities within the next 50 years. Most of the technology we carry around daily already comes equipped with data sensors that are constantly monitoring and improving the quality of life for many people. Think about smart houses and that people interact with those environments but on a much larger scale. With smart sensors incorporated into the design and construction of many CRE projects, people will be able to be more efficient, more secure and more aware of their surroundings. However, this does pose a problem for the construction industry, as they must choose to prepare in the design phase for smart technology fitting in the future. This also poses a problem for structures built before this tech was even conceivable. One thing is for certain: our cities are going to start mirroring the science fiction visions of the millenium from generations gone by.
Some Things Change. Some Never Do.
While all these changes have begun to affect the CRE industry as it stands now or will drastically reshape it for the future, the fact remains that tenants do still need space to occupy and there is still a demand for new spaces for living, work, health and entertainment. While the industry might need to come into the future a bit, the transition is sure to be a good thing.
Are you looking for a future minded property manager or perhaps a new location for your business that incorporates your vision for the digital age? Our team at LCI Realty specializes in commercial real estate and we can help businesses find the perfect space or connect property owners with quality business tenants. Contact a member of our team today by clicking here.
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