Technology is becoming more prevalent in today’s commercial real estate market. Prior to 2020, tech adoption was slow, but firms are starting to realize they need to change if they want to stay relevant and competitive. After all, clients expect you to keep up in this lighting-fast industry.
5 Reasons Technology is Important in Commercial Real Estate
According to studies, 34% of real estate managers are having trouble keeping pace with new technology.
However, adopting technology is incredibly important for the following reasons.
1. Technology Gives You an Edge During Lease Negotiations
A simple Google search allows real estate teams to research relevant and up-to-date data on almost anything. Developers can use search engines to assess average rent prices per location or delve into the most profitable commercial markets, but it’s better to use software instead.
For example, Northspyre is a cloud-based intelligence platform that collects and centralizes commercial real estate data for the person of data-driven decision-making. With this information readily available, you can negotiate a fair deal for office rentals. Learn more at northspyre.com.
2. Technology Streamlines and Simplifies the Leasing Process
Before modern technology, agents, developers, and investors had to actively cold call potential clients, spend hours communicating over the phone and be physically present to sign contracts. Now, taking the non-tech route is a waste of time and money for you and your clients or tenants.
Real estate companies don’t have to lease out two or more offices across the city to stay close to the action. Going with one office already saves you hours of extra legwork and research.
We’re in the era of 360-degree office tours, video conferencing technology, and eSign software that reduces a lot of back-and-forth and tedium. You could complete your next office project without ever walking out your door because the entire leasing process can be finished online.
3. Technology Makes Investing and Portfolio Management Easy
Most real estate investors won’t stop at one commercial building; they’ll keep building their portfolios until they reach their goals. Property management software, like Doorloop, includes an accounting suite and a CRM and tenant portal that helps streamline your entire business.
Your automation and payroll software may also include maintenance order management, marketing features (i.e., scheduling showings and tenant screenings), and an owner portal. But even barebones accounting suites can automate monthly payments for rent and utilities.
4. Technology Can Reduce Occupancy and Building Costs
Finding the perfect lease or development is hard enough as it is, but it’s even more difficult to manage the multiple ongoing costs that may make a project unaffordable. Fortunately, the push towards green and energy-efficient tech has led to significant cost savings for the industry.
For example, installing 40 LED fixtures instead of 40 non-LED lights in an office building can save you $6,581 and 38710 kWh per year if you’re keeping the lights on for 76 hours per week.
Remote work is also providing cost savings for commercial developers. As fewer people work out of the home, more buildings can be built with smaller offices. Not only will these offices cost less to build, but they’re also less expensive to run, which benefits your potential clients, as well.
5. Technology Keeps You Connected to Key Industry Partners
If you’re having an issue with one of your buildings or you need to contact someone on your team right away, technology can keep you connected at all times. Instead of ringing someone's phone, hoping they’ll answer, you can send a quick text or email to make sure they’re available.
Property managers can use chatbots or apps to speak to tenants directly. If something happens outside of office hours, tenants can report a problem without it causing any disruptions to your business. Plus, your clients, contractors, and tenants will feel heard and cared for at all times.