The Everest Newsletter: Commercial, August ’18 Edition
Technology continues to create value in commercial real estate
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Just the Peaks This newsletter, at a glance
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Read on to see which tech trends are transforming the industry
The real estate industry is notoriously volatile, but the commercial sector takes the cake when it comes to sudden, unrelenting change. From tenant management systems and marketing tools to issues of connectivity and sustainability, trends are always shifting in response to new technologies. In fact, a June study by Akerman law firm revealed that 48% of real estate executives rank technology “among the two most critical trends” shaping the next three years. (The other is Trump’s extensive revision of the tax code.)
What’s the impact of innovation?
CRE’s embrace of technology isn’t solely about the wants or needs of prospective occupants, though that’s an important part of the picture. Many of today’s breakthrough tools are also transforming the ways we market, lease and manage buildings from the point of construction all the way through tenanting. Don Catalano of REoptomizer Software says, “2018 is going to be another year where the lines between commercial real estate and the technology industry get blurrier.”
Certain trends have had a widespread impact across all areas of commercial real estate, while others are just starting to materialize in the office subsector. One currently hot commodity is the integration of virtual reality. Instead of wasting precious time and expenses on travel, investors, buyers and lessees are now able to tour potential properties from afar— in some cases, before they even exist. Software allows builders and agents to showcase a building’s features in stunning 3D detail, boosting marketing efforts
Realtors’ remote control
Ever since they went mainstream a few years back, drone cameras have played an integral role in real estate. HD photography and videography prove to be powerful marketing tools as they capture a bird’s-eye view of everything from residential waterfront homes to high-rise city offices. But for commercial purposes, these unmanned aerial vehicles offer additional benefits.
Beyond creating compelling images for online listings and brochures, drones are allowing owners and site managers to monitor properties in entirely new ways. When coupled with building smart sensors and surveillance, drones can increase safety, security, and the speed at which you troubleshoot potential threats.
These are just two tools infiltrating the industry. Let’s zoom out and consider some other stats surrounding technology and how it’s helping commercial players get ahead.
CRE Tech Stats
Summer 2018
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$6B Total monies invested in CRE tech since 2011 |
70% Percentage of all funds invested in the last two years |
$90B Total projected information security spending in 2018 |
30% Cost savings that come with cloudbased IT |
*Stats contributed by Captivate Real Estate Research, 2016-2018
Other trends to watch
Experts say the Internet of Things is sure to be a standout in coming years, especially in building management systems. IoT will not only assist landlords in their problem-solving tasks, but also serve as an attractive amenity for office tenants looking to automate and track certain elements of their workday and environment
The people at Captivate also say “blockchain will be a CRE disrupter,” citing the cryptocurrency boom of 2017. They give similar nods to artificial intelligence, augmented reality, chatbots, big data mining, new property management software, among others.
Embrace the future, close the deal
Through changing trends and market cycles, Everest elevates your commercial financing experience