Times are changing, and technology is evolving. A variety of factors influence the decisions of tenants and commercial real estate companies today. A range of modern digital and AI solutions are available to help CRE firms meet the demand of tenants and investors. The goal of CRE leaders is to maximize the use of these technologies to improve the experience of their customers.
The following trends in commercial real estate will help executives in the commercial real estate industry make informed decisions when it comes to managing their properties and protecting the interests of their tenants or investors.
Most businesses are transitioning from manual to digital when it comes to a variety of processes, such as office space acquisition, marketing, and payment. Imagine not having to go to the office of the property management company to pay the rent or settle the payment for a property sale. The process can be done online through a mobile bank deposit or transfer feature.
The global workforce is also becoming more demanding when it comes to location, workspace design, and technological advancements to be used in daily operations. The way tenants’ expectations about how commercial real estate is consumed are currently changing. They are looking for more technology-enabled experiences. This trend is shaping the commercial real estate (CRE) industry.
That said, CRE companies need to invest in technologies that will improve tenant and customer experience. A survey revealed that more CRE executives are increasing their investments in technologies, such as digital marketing, artificial intelligence, wireless connectivity, and the Internet of Things (the smart internet technology).
Internet of Things (IoT)
The Internet of Things is currently changing the way CRE companies manage their properties and tenants. The number of smart buildings is on the rise, and this will have a significant impact on the business owners or tenants’ investment decisions. For example, IoT-enabled smart buildings can have a huge impact on the decisions that CRE executives will make. Aside from location, this type of building is what tenants are looking for these days. More CRE leaders are planning to increase their investments in smart facilities and IoT-enabled systems this year.
Commercial real estate companies are starting to use modern technology in collecting data. They need another reliable technology to utilize that data, and artificial intelligence is a great option. This technological marvel can help CRE firms classify and segregate data quickly and accurately.
More real estate companies are aware of the availability and benefits of AI. For example, AI makes it easier to analyze trends and patterns that can help predict the behavior of commercial tenants, as well as the turnover rate. It is also easier to automate the leasing process; therefore, making the transactions smoother and faster than ever.
Green Buildings are on the Rise
With the increased need for sustainable and eco-friendly building designs, more CRE companies are adopting the green concept when constructing and renovating their properties. For example, rooftops that were used to be empty are converted into gardens or landscaped decks where tenants, employees, and customers can lounge, relax, have a break from technologies, and enjoy the beauty of nature in an urban setting.
Indoor plants are also becoming more common in commercial spaces, especially the offices. Many experts believe that these greens can improve the ambiance and air quality in the workplace. Most employees also agree that seeing plants in their workspaces keeps them calm and relaxed.
Cybersecurity and Privacy
The popularity and use of advanced digital technologies increase, and so is the need for improved cybersecurity and privacy. Industry experts and commercial investment lawyers warn about several vulnerabilities in digital systems and the transactions between CRE companies, investors, and third-party vendors. The risk increases when some organizations outsource their data management.
That said, many players in the commercial real estate industry are using smart technologies such as advanced sensors to collect and track the information of tenants, employees, and customers. Data is more secure when there are a more reliable collection and tracking system in place.
Trends guide entrepreneurs in planning the future of their businesses. Monitoring the changes and improvements in the commercial real estate industry is vital to make sure you are making the right decision for your organization. Whether you own a commercial building, or you are planning to rent or buy one, trends will help you take the best path to success. We can expect more changes in the future, but as long as we are flexible and we make room for improvement, we can quickly adapt and move forward.