According to statistics by J.P. Morgan and Real Capital Analytics, the commercial real estate market is booming, multifamily vacancies are at a record low of 4.7%, and sales of commercial properties recorded a 56% year-over-year growth in Q1 2022.
And, if there is something that has made this growth possible, that is the availability of new technologies and innovative solutions that support the timely and cost-efficient delivery of real estate projects. Learn the impact that technology is having on the CRE sector in the guide below.
Understanding More About Commercial Real Estate Technologies
While the commercial real estate sector is undeniably thriving, reports indicate that there is a shortage of 2 to 5 million units. And, this gap has placed real estate developers and property management companies under unprecedented pressure.
However, thanks to emerging technologies, real estate developers are now able to automate several aspects of their operations, gather real-time and accurate data, visualize the finished product, and maximize cost efficiency.
Since commercial real estate technology is transforming the industry at lightning speed, it is crucial for all developers to learn more about it and keep on top of emerging trends.
BIM and 3D Modelling Supports All Stages of Real Estate Projects
Building Information Modelling (BIM) and data-rich 3D models are playing a critical role in the digital transformation the real estate industry is undergoing today.
These systems, which employ technologies such as CAD software and cloud computing, are powerful visualization tools that developers can use to obtain more accurate estimations of the costs, challenges, and risks of a real estate development project during its pre-construction phase.
In turn, developers can avoid costly mistakes and revisions at later stages of the construction process, which can delay the completion of the project.
VR and Augmented Reality Boost Buyer Confidence
Due to the shortage of commercial and residential units, a growing percentage of properties are sold off-plan – or even before the building is constructed. For developers seeking funds through this strategy, the ability to close deals before investing in a new construction project may be critical.
Nonetheless, according to reports by Fannie Mae, confidence levels among property buyers are dipping to an all-time low.
Luckily, new visualization technologies such as VR and augmented reality can deliver an unprecedented amount of data about a certain building before it’s constructed. This means that developers and potential buyers can visualize the property’s value, quality, timelines, costs, and schedules from the pre-construction stage or earlier.
New Software Facilitates Property and Facilities Management
Facilities and property management software allow developers to effortlessly manage more than one product at once while also automating aspects such as keeping up with compliance, handling complaints, and finding new tenants.
What’s more, this software represents an invaluable tool to control costs and maximize the revenue of a CRE investment.
NFT and the Metaverse Can Streamline Real Estate Sales
It isn’t a secret that real estate transactions are cumbersome, highly bureaucratic, and prone to human error. However, emerging technologies such as NFTs and the Metaverse can streamline commercial property sales by supporting immediate, secure, and immutable transactions.
Indeed, these solutions are based on blockchain technology, which is revolutionizing many aspects of real estate thanks to its properties. Blockchain transactions are not only impossible to be tampered with, but they also provide privacy and security to the parties involved in the transaction.
Big Data is Enabling Smarter Business Decision-Making
CRM systems, coupled with property and facilities management solutions, allow developers to capture an unprecedented amount of market insights. This data is not only far more accurate and current than it has ever been, but it is also easily accessible and can be used in real-time.
This means that developers can get immediate access to reliable market insights, better understand the needs of clients and buyers, and mitigate risk.
While these technologies have already left a significant mark on today’s real estate industry, new, cutting-edge solutions are just around the corner. So, it has never been more important for developers to keep up with the latest trends in the market.