The commercial real estate (CRE) industry is experiencing a huge transformation driven by new technologies in the real estate market. As the real estate sector evolves, the use of cutting-edge property technology (prop-tech) solutions has become crucial for CRE professionals and realtors to stay competitive and efficient.
For instance, a recent study by Deloitte found that over 72% of real estate companies are now investing in technology to improve operational efficiency and enhance the customer experience. This shift goes to show the growing importance of embracing real estate technology trends to navigate the complexities of the modern market.
In this article, we will review the various ways in which technology is revolutionizing the CRE sector and how Blooma can integrate with these trends.
Wondering what are the new tech trends and technological advancements in real estate technology? Here’s an overview of the commercial real estate technology trends to know about.
Virtual reality is revolutionizing the way property is viewed by providing potential homebuyers and renters with an immersive experience of property, providing home tours even from the farthest corners of the globe.
Such 3-D virtual property tours provide a sense of space and layout that is realistic for the client to make a decision without the need for physical visits. For real estate agents and property owners, the VR tours save time and resources by attracting more serious inquiries and reducing the number of in-person showings.
Artificial intelligence and automation are streamlining the underwriting process in commercial real estate. Automated underwriting systems analyze immense amounts of data in a flash with even more accuracy, assessing risks and determining property values. This cuts down the time and effort of the manual underwriting process and speeds up decisions while optimizing the efficiency of real estate transactions.
Big data and predictive analytics transform how real estate professionals understand and anticipate market trends. By analyzing large datasets, these technologies can predict market shifts, identify investment opportunities, and determine property values more accurately.
Predictive analytics empower real estate professionals with data-driven decisions, empowering them to respond faster to market change while optimizing their investment strategy.
Blockchain is an emerging technology designed to promote transparency and security in real estate deals. Smart contracts, which are self-executed contracts with the terms directly written into lines of code, streamline the transaction process by reducing the need for intermediaries.
This technology ensures secure, transparent, and efficient transactions, protecting against fraud and reducing the time and cost associated with traditional processes.
The Internet of Things is changing property management by connecting different devices and systems inside a building. Smart property management systems use IoT sensors to monitor and control different functions in buildings, such as lighting, heating, and security. By enhancing operation efficiency, reducing energy consumption, and improving comfort for tenants, they improve satisfaction and retention rates.
Augmented reality enhances property marketing through interaction and engagement with potential buyers and renters. AR applications can overlay digital information onto physical spaces, allowing clients to see how a property can be improved or to examine detailed information on specific characteristics.
This improves the client experience and aids real estate professionals in presenting the property.
Artificial intelligence (AI) and automation are totally changing property management by handling boring, repetitive tasks more efficiently and accurately. With AI-driven property management software, you can automate maintenance requests, rent collection, and tenant communications.
Let’s discuss loan origination in commercial real estate. It’s usually a complicated and time-consuming process with lots of paperwork and manual assessments. But thanks to AI, things are getting easier. AI simplifies this whole process by automating data collection and analysis, speeding up credit evaluations, and more effectively spotting potential risks.
For example, automated underwriting systems use machine learning algorithms to analyze financial statements, market trends, and borrower histories, giving lenders quick and accurate risk assessments. This not only speeds up the approval process but also makes lending decisions more precise, reducing the chances of defaults.
Automated lease management systems can keep track of lease terms, handle renewals, and make sure everyone sticks to their contractual obligations. AI-powered tools can even analyze lease agreements to find important dates and clauses, helping property managers stay on top of their responsibilities. Plus, natural language processing (NLP) algorithms can extract and analyze key info from lease documents, making the administration process smoother and minimizing the risk of errors.
By crunching huge amounts of data, AI can help you spot trends and make predictions with incredible accuracy. Machine learning algorithms analyze historical data, current market conditions, and economic indicators to forecast property values and market dynamics.
For example, AI can predict rental income potential, occupancy rates, and market demand, which helps real estate professionals make smart investment decisions based on data. These insights keep investors and property managers ahead of the game and help them optimize their portfolios for maximum returns.
Automation also speeds up transaction processes by eliminating manual work and streamlining workflows. AI-powered platforms can handle document generation, due diligence, and compliance checks, ensuring that transactions move forward quickly and smoothly.
Take blockchain technology and smart contracts, for example. They automate the execution and recording of real estate transactions, reducing the need for middlemen and minimizing the risk of fraud. This means faster closing times and more transparency for everyone involved in the transaction.
Big data is completely revolutionizing the real estate industry by giving CRE professionals incredible insights into market trends, property values, and customer behavior. Here are the main ways it’s driving an impact:
To get started, you can use tools such as:
Blockchain technology is set to revolutionize the CRE industry by making transactions more transparent and secure. Basically, blockchain is a digital ledger that records transactions on multiple computers, ensuring that the data is safe and reliable. Each transaction becomes a “block” in a “chain” of previous transactions, creating a record that can’t be changed.
In the world of CRE, blockchain can solve a bunch of long-standing problems:
One of the most exciting ways that blockchain is shaking things up in CRE is through smart contracts. These are contracts written in code that automatically enforce themselves. When certain conditions are met, the contract does its thing without any middlemen getting involved.
This means:
The Internet of Things (IoT) connects all sorts of devices and systems to make everything run like a well-oiled machine and beef up security. With IoT solutions, property owners and managers can level up their property management game with smart building technologies.
It drives a difference by:
Here’s a quick step by step guide on how to get started with Blooma for integrating your tech solutions:
Leading the charge in the future of real estate requires embracing innovative technology solutions that enhance efficiency, accuracy, and strategic decision-making.
By partnering with Blooma, real estate businesses, and startups can confidently and successfully navigate the future of CRE.
Take the first step toward transforming your operations with Blooma’s advanced real estate tech today.
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