Emerging technologies have recently been impacting The commercial real estate (CRE) industry which has traditionally been perceived as one of the industries slow adapting to technological change, is now at a turning point of change. Emerging technologies are not just influencing how properties are bought, sold, and managed but also modifying the role of CRE brokers. In this article, we will talk about the impact of these technologies on CRE brokers and how it’s reshaping the commercial real estate landscape.
Virtual and Augmented Reality (VR/AR)
Virtual and Augmented Reality is transforming how property is presented or shown. Because of these technologies, clients can now explore a property virtually from anywhere in the world instead of physical visits which consume time and effort. AR, on the other hand, enhances the clients search experience by creating digital information about the property’s physical spaces making the clients understand the property potential better.
As per Strato flow, “AR and VR are becoming more widespread, and experts predict they will become a standard in the real estate industry by 2024.”
Big Data and Predictive Analytics
In this modern world, data is everything and commercial real estate is not an exception to data innovation. The emergence of big data and modern analytic tools has helped commercial real estate brokers leverage how they collect, store, analyze and use information. These kinds of technological trends enable a deeper understanding of market trends, property valuations and investment potential. By having this kind of innovation, brokers can make more informed decisions, provide better advice to clients and identify successful investment opportunities.
“Property management software, for instance, allows professionals like you to centralize data, automate tasks, and optimize workflow. This not only saves time but also reduces the margin of error, improving overall operational efficiency.” read more about this information in this article.
Customer Relationship Management and Automation Tools
Customer Relationship Management (CRM) systems have been innovated with recent emerging technologies. Most of the modern CRM systems are integrated with AI that can automate follow-ups, manage client data more efficiently, and provide a wide array of personalized insights. Because of this, you can maintain better relationships with your clients and stay on top of your sales pipeline with minimal manual intervention.
Artificial Intelligence and Machine Learning
AI and machine learning are not just a “trend”, they are game changers. These emerging technologies are powerful tools that can predict market trends, identify investment opportunities, and automate routine tasks. It can process vast amounts of data to identify patterns and insights that would be impossible for humans to perceive, leading to more strategic decision-making. Because of that, brokers can now analyze data, manage customer relationships, and conduct market research in an effective and strategic manner.
According to multifamily executive, “Over the past year, conversations centered on generative AI and its many applications for commercial real estate dominated the industry, and we can expect to see and hear more of this as we enter 2024.”
Here is an informative article about how AI is impacting commercial real estate.
Internet of Things (IoT)
IoT devices are transforming building management and operations effectively. Because of its capability to track and manage building systems, improving efficiency and reducing operating costs; it is helping commercial real estate brokers on advising clients to property investment especially those who investors who are focused on sustainability and operational efficiency. Learn more about the rising demand for sustainable or green building and how it is a lucrative shift in commercial real estate.
Drones and Aerial Imaging
It is important how you present a property to a potential client, especially through images and videos. Although a lot of commercial real estate brokers use high quality cameras, drones also provide a unique perspective on properties, offering high-quality aerial photographs and videos. This technology is very useful, especially for large-scale properties in providing a comprehensive view that can properly aid in valuation and marketing.
Online Platforms and Marketplaces
Digital marketing strategies are now an integral part of the Commercial Real Estate brokerage business. Platforms like LinkedIn, Instagram, and specialized real estate forums provide powerful tools for networking, branding, and property marketing. These online platforms have made buying, selling, and leasing processes more accessible. By providing engaging content and targeted ads, CRE brokers can reach a broader audience, attracting more potential investors and tenants. Not only that, but these platforms also offer a lot of information and resources at the fingertips of brokers and clients alike, democratizing access to real estate opportunities.
Challenges and opportunities
While technology offers numerous advantages, it also has challenges. Adapting to new tools requires time and investment. Aside from the learning curve, staying updated with the latest technologies is crucial. However, those who embrace these changes are likely to gain a competitive edge, offering superior services to their clients.
But despite technological advancements, the human element remains irreplaceable in Commercial Real Estate. Personal relationships, experience, and intuition are aspects that technology cannot completely replicate. As a CRE broker, blending your expertise with these emerging technologies can lead to more informed decisions, efficient operations, and ultimately, successful deals. Lastly, we all know that Commercial Real Estate brokers are not created equal. To ensure you’re making the best choice, this article about choosing the right broker tackles the ten essential questions to ask your commercial real estate broker before working with them.
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