Real estate is continuing its reinvention toward technology-enabled operations and service. Companies that successfully embrace these changes can drive cost savings, operational efficiencies and tenant engagement. Technology in Modern Commercial Real Estate.

However, limited resources and competing priorities often trump the opportunity to invest in new tech solutions.

1. Real-time Access to Data

Real estate investors often have a difficult time embracing new technologies. This is especially true in CRE, which relies on a wide variety of systems to manage operations. These include CRM platforms, property websites, and smart contracting. These solutions make it easier to connect with occupants, track inventory, and communicate with tenants.

While there is a lot of noise around the potential loss of jobs and a lack of human touch in decision-making, these technology advancements will help to streamline business processes. By using alternative data sources and advanced analytics, real estate firms can reduce the risk of human bias and accelerate the speed at which they can make decisions.

The ability to create a digital twin of a property is another example of how new technology can help to improve commercial real estate fundraising. This process allows for a more accurate and detailed view of the building’s performance. This is particularly useful in areas such as sustainability, cost savings and reducing environmental impact.

2. Streamlined Processes

While point solutions for specific real estate disciplines — think software for accountants or leasing brokers — have brought the industry up to speed, the end-to-end technology solutions required to operate the modern CRE ecosystem have been laggards. Now, however, as investor capital migrates to firms with fully realized technology platforms, those without them find themselves falling further behind.

To avoid that fate, companies must make clear business cases for implementing change and implement technology transformation with agility. They also need to ensure that they’re communicating that vision clearly across their teams and allowing staff to contribute to the process.

For example, whereas entrepreneurs can raise funds in tiered phases throughout the life of their businesses, real estate developers and sponsors need to secure debt and equity for entire projects upfront. To do so, they must streamline project information into all-in-one packages for investors to quickly understand. Technology that automates these processes can help them do so.

3. Automated Reporting

The ability to deliver reports on a real-time basis is one of the best benefits that comes with automation. This feature makes it easier for clients to access the information they need, when they need it. This increases client satisfaction and helps agencies build a strong reputation.

Automation also removes the need for employees to manually compile and prepare reports. This can help to reduce employee demotivation, which in turn lowers the risk of losing talented and experienced workers.

Although the pandemic has slowed down investment in commercial real estate technology, it has not stopped many large and established managers from closing new vehicles. However, it has slowed the speed of growth for early-stage companies as investors are reluctant to take on additional exposure while there is still uncertainty in the market.

4. Better Decision-Making

CRE investment is a complex process with numerous challenges and setbacks that can stall progress. Many investors are also working with time frames that require them to build, renovate and fully lease their CRE investment within a certain period of time.

Technology helps to make business decisions more quickly and effectively. It eliminates psychological biases and allows decision-makers to process relevant data more efficiently. This can help reduce the risk of making costly mistakes and improve a company’s chance of success.

Investors are increasingly looking for innovative solutions that can support their investment goals and help them differentiate their brand needs read more hear.