Big-Picture Changes In Commercial Real Estate

New technology has reshaped many of parts of our economy and it is starting to impact commercial real estate. Technology is growing more integral to our society every day; there is now an app for almost everything, from car sharing to banking to grocery store coupons. However, for the most part, commercial real estate has been slow to change, adopting new technology at a more gradual pace. But this is about to change.

As clients and investors begin to rely more on technology, the real estate industry itself will have to change in order to keep up with them. In the past, if someone wanted to invest in a commercial property they had to contact an agent who would compile and print a list of available properties that met their needs. Now, potential clients can (and do) much of this work themselves, with most available properties just a Google search away.

Where previously buyers and sellers were somewhat limited to their local market, technology has created a wider network for the industry to do business. Although it will still be helpful to use local experts who know the property area and have first-hand insights on the market, it won't be necessary in order to source and complete a transaction.

Commercial real estate is driven by data and the ability to aggregate and analyze that data is of critical importance. In the past, data aggregation was done manually and then reviewed by a team of analysts. New technology has significantly reduced the amount of time it takes to locate and analyze market data, allowing investors, property managers and commercial owners to operate more efficiently and make better decisions.

Not only is technology revolutionizing data and analysis for owners and investors, but it is reshaping marketing for commercial properties, especially for properties that haven’t been built yet. Virtual reality technology is a game changer in marketing new developments, because it gives potential investors and tenants the ability to visualize the space before construction has even started.

New technology in leasing and asset management systems will allow property managers and landlords to reduce costs and increase revenue. Technological advances in everything from green building materials to property and vendor management systems will make lease management and building operations much more efficient.