The commercial real estate evolution has been long overdue, but it is finally happening. The recent technological progress has led to changes in several industries, and commercial real estate is not an exception. The industry has become far more efficient and integrated due to digitization, increasing process efficiency, and effectiveness.

The best way to understand this evolution is to explore the specific technologies that support the industry’s operations. This blog will identify a few notable technological changes that have led to critical commercial real estate transformation.

How Technology is Changing Commercial Real Estate

The impact of technology on commercial real estate is significant because it has introduced changes to both trends and operations. The list of technologies affecting the industry is extensive, but the following are the top drivers of change:

1. Digital Media

Digital Media has completely changed the playing field by increasing avenues for brand engagement, and offering targeted reach. It remains a relatively cost-effective channel that directly connects people with brokers, allowing convenient information access.

Websites and social media platforms have been integral to this shift since both allow businesses to run targeted ads, ensuring their communication reaches people looking for relevant services.

2. Sustainable Technology

Another significant change has been to the industry, primarily due to the climate crisis. Several technological advancements, like solar energy, energy and water efficiencies, etc., are trending. Commercial real estate investors have started investing more in properties that incorporate sustainability.

The shift is mainly due to the global inclination towards environmental protection and the increase in demand for the same at the consumer level.

3. Artificial Intelligence Facilitation

Artificial intelligence will be central for the future due to its diverse applications. It is helping revolutionize building optimization by presenting ideal layouts, structures, and building materials based on functional needs.

Furthermore, AI has also been instrumental for marketing and vendor management, increasing acquisition efficiency and reducing risk.

4. Internet of Things (IoT)

The Internet of Things (IoT) is the central information server connected to devices like smartphones and smart devices. It is an extensive database that continues to expand and makes it possible for people to quickly lookup information about diverse topics.

IoT is why clients can conveniently find commercial real estate brokers, properties, etc. when considering a transaction. They can also find relevant information for guidance in making the right choice.

5. Data Quality

The overall data quality has improved significantly due to advanced tools for analysis. People can look up information on digital media to become more informed, allowing them to avoid common frauds.

This information access has improved investor decisions, leading to higher profitability and progress.

Wrapping Up

In a nutshell, technology has been critical for commercial real estate evolution in diverse ways. It has made information more accessible, increased engagement between relevant parties, and optimized operations. Hence, technological integration has helped the industry develop extensively.

Please contact the CHRE team to invest in commercial real estate. We have been working in the industry for several years and find the best deals for your portfolio.