Digital transformation continues to play a key role throughout the commercial real estate industry. These changes have made a big impact on the industry for well over a decade. The use of PropTech streamlines the real estate industry with the help of innovative technology. PropTech companies allow an increase in innovation and more transparency in the commercial real estate industry. The use of property technology continues to rapidly evolve, as venture capital firms invested over $8.3 billion in PropTech companies throughout the world.
The pandemic has created many unique challenges in the real estate industry. The significant demands of the pandemic continue to accelerate the use of state of the art real estate technology. PropTech companies are expected to continue to use commercial real estate technology and provide many new opportunities for end-users.
COVID-19 radically transformed how everyone lives and works throughout the entire world. The use of commercial real estate technology has taken center stage in helping company leaders during this transition process. For example, the location of where people will work will primarily depend on employee preferences and the needs of each business. Integrating these plannings and investments is essential for companies to stay up to date with these changes.
The pandemic was a big eye-opener, as we will continue to see a significant accelerant of existing tech trends. Many in the real estate industry believe that the pandemic exposed significant shortcomings in their digital capabilities. Only 40% of the respondents to a 2021 CRE Outlook survey said their company had created a defined digital transformation map.
Walking a tightrope between managing expenses and investing in the future is always a top concern for anyone in the real estate industry. All of the decisions made during 2021 will have a big impact on those who start to differentiate themselves from competitors and drive value proposition.
The impact of the COVID-19 pandemic throughout commercial real estate (CRE) will accelerate these four tech trends in 2021 and beyond.
Real Estate Technology and Digital Marketing
Real estate digital marketing will continue to make big advancements in 2021. Staying up to date with these trends is critical in improving digital engagement for the commercial real estate industry. Digital advertising for real estate never stays the same for very long but it’s always evolving.
Here are four accelerated tech trends that will play a key role in commercial real estate.
Use of More Data
The CRE industry continues to create and use a lot of data. Capturing and using all of this information about a building itself while also using the Internet of Things (IoT) is a combination that will improve operations and make everything more efficient. All of this data can improve occupant experiences while also identifying potential problems.
Direct digital engagement makes it possible for the end-users of real estate to gain access to touchless services to create a safe and healthy environment. The automation of traditional processes also offers additional safety while making it possible to learn more about digital real estate.
Data and Analytics
Data-driven decision making will also continue to evolve as demand and behavior patterns change. CRE companies will work to understand how to respond to these opportunities and the risk of these changes. Gaining access to real-time data and analytics is much more effective in making the best decisions without solely relying on instinct or gut feelings.
Robotic Process Automation
Taking advantage of digital real estate is often a slow process due to the hesitancy to leverage the latest technology in the industry. Robotic process automation is an excellent example of the slow adoption process in CRE. However, the use of robotic process automation is an excellent way to improve operational efficiency and minimize costs. Robotic process automation will continue to play a vital role in the overall digital transformation efforts.
Understanding how technology has changed the real estate industry is critical to long-term success. The use of digital real estate marketing can play a key role in extending outreach with the help of PropTech companies. Ultimately, the competitiveness of a CRE company in the post-COVID-19 world will significantly hinge on how their people can succeed in today’s digital work environment.