How Technology is Changing Commercial Real Estate: Top 3 Trends in 2021
Technology is always evolving. Innovation has impacts that ripple across all industries, and commercial real estate is no exception. New and emerging technology is leading to changes in the commercial real estate industry. From virtual reality to smart building solutions, join us in exploring some of the hottest commercial real estate technology trends.
3 Commercial Real Estate Technology Trends
Technology and innovation impact many facets of the commercial real estate industry. Here are some examples of how technology is changing commercial real estate:
- Market research and evaluation
- Finding and closing deals
- Communication with partners and tenants
- Tenant satisfaction and retention
- And more
Many features and processes across the industry have moved online, and the coming years will bring even more advancements. Our team has identified the top three technology enhancements shaping current and future commercial real estate trends:
1. Virtual & Augmented Reality in Commercial Real Estate
More property owners are using virtual tours to promote real estate sales. Virtual tours can replace traditional, static real estate photography and enhance the experience of exploring properties remotely. With an advanced and immersive remote tour, prospective buyers can feel confident about a property while avoiding the inconvenience and expense of constantly traveling for viewings and open house events.
Virtual tour technology has come a long way in recent years. Advanced camera equipment captures high-resolution panoramic imagery which is then integrated with a 3D model of the floorplan. The final product is an immersive experience where users can navigate their way through the space, viewing different rooms as if they were actually walking through the property.
3D virtual tours also help renters see what a new place will look like before they commit to signing a lease. If you’re a property owner, offering 3D tours will make your property stand out from others in the area. Ultimately, investing in 3D tours and interactive online experiences for prospective tenants is likely to help you fill vacant units faster.
2. IoT Enhances Commercial Real Estate Technology
Smart technology devices are becoming more advanced and less expensive, making them an increasingly attractive option for all types of applications. Installing IoT (Internet of Things) smart devices in an apartment building, retail space or other commercial property can greatly elevate the experience for renters. And you can implement some IoT devices at a relatively low cost.
Examples of using smart devices to enhance a commercial real estate space include:
- Using automated door locks to make a building safer and allow tenants to open doors using an electronic key fob or even an app on their phone.
- Installing smart thermostats to give tenants the power of custom, automated HVAC settings.
- Upgrading to intelligent lighting that can integrate with occupancy sensor.
With the right smart technology solutions, tenants are given greater control over their environment. This is a powerful amenity perk to offer prospective renters and will set your property apart.
Smart devices can make a space more comfortable and more convenient for building management and tenants alike. Smart technology integration also provides opportunities for robust data collection and increased efficiency.
3. Smart Buildings & Data Collection Technology is Changing Commercial Real Estate
Smart buildings are always gathering data that can be used to optimize building performance. Occupancy or environment sensors and door counters are two examples of smart building integrations that can be used to improve efficiency. With data collected from these devices, building owners can adjust lighting, HVAC and other settings. With smart building data, resources can be redirected for use in high-traffic areas, and utilities can be streamlined to create a more efficient space.
There is some cost associated with integrating IoT technology and smart building solutions in a new build or retrofit project. But smart building technology provides valuable, actionable insights that lead to savings over time. Smart building solutions and data collection technology are growing commercial real estate technology trends we expect to see more of in the coming years.
Explore More Commercial Real Estate Trends
Commercial real estate is always changing along with advancements in technology. The Katalyst Team makes it a priority to stay on top of commercial real estate trends so we can offer helpful advice to investors. Our experts have years of experience in the industry and can help you with your next property investment. Reach out today to start optimizing your commercial investments and help them stand out from the rest.