Commercial Real Estate Technology Trends

6/6/2024 (Permalink)

Commercial Real Estate Tech

Commercial real estate has been on a wild ride in recent years. Following lockdowns related to the COVID-19 pandemic, many companies transitioned to work-from-home to protect employees and the public.

While this trend was initially a short-term solution to a novel concern, the work-from-home movement only picked up steam, causing some companies to continue offering work-from-home options. In fact, some businesses completely reworked their plans and permanently transitioned to fully or partially remote staff.

If you’re in the commercial real estate industry, you’ve undoubtedly kept up with these changes and may wonder what’s next. We’ve put together some research to look into how technology is changing the face of commercial real estate, and we’re happy to share with you some of the latest commercial real estate technology trends to keep an eye on.

Every property management organization is different, and there’s no way to know exactly what the economy will do in the future. Still, the following trends are based on current events and emerging changes. You’re encouraged to research commercial real estate trends in your location, as real estate can be hyper-local.

Predictive Maintenance

Predictive maintenance, which uses artificial intelligence (AI) tools, is quickly becoming a hot topic and one of the latest commercial real estate technology trends. It monitors maintenance tasks and properties in real-time, updating property managers about maintenance needs.

Traditional property maintenance relies on a similar system, but AI-powered tools can adjust maintenance schedules based on variables. For example, in a traditional setup, a property will have a maintenance schedule for light bulb changes. This schedule may dictate that light bulbs must be changed every six months in certain areas.

A property that utilizes predictive maintenance tools can have the same schedule, but these tools can alter the schedule based on events happening around the property. If a bad storm causes a power surge at a commercial property, the predictive maintenance software can notate this and use real-time data to alter the maintenance schedule. Because light bulbs may be adversely affected after a power surge, the software may alter the schedule for changing light bulbs to have them changed sooner.

Another example may be where nearby construction has caused a water mitigation issue that changes the dynamics of property maintenance. These variables could be entered into the predictive maintenance software, which will factor them into the current plan. The AI may then temporarily alter the current maintenance plan to account for the changes in moisture levels and then dynamically alter the maintenance plan once the issue has been resolved.

Market Analysis Tools

Real estate owners in the commercial real estate sector also use software to monitor market dynamics and make data-driven, informed decisions. Because of the hyper-local nature of the commercial real estate industry, it’s vital to stay on top of trends in your area and keep up with what your market is doing. Monitoring trends via software and online applications has become more important in order to remain nimble in a changing market.

This can be even more helpful if you’re an investor in commercial real estate. Valuations change constantly, and population fluctuations and other factors can turn a once-thriving commercial real estate market into a ghost town and vice versa. Using analytics software to keep track of market trends can be an advantage for commercial real estate investors.

Commercial property managers also employ so-called “property intelligence” analytics to get a more in-depth look at properties. Property intelligence software is designed to aggregate all kinds of data points about a property or collection of properties to provide insights to owners and managers.

These insights save time over manual review but can also be incredibly useful when managing several different properties. The software aggregates data and can then offer recommendations for overcoming challenges, making improvements, and managing cash flow.

Virtual and Augmented Reality

Virtual reality (VR) and augmented reality (AR) technologies have been in consumers' hands for about a decade but have mostly been used for gaming and entertainment. Although efforts have been made to bring VR into the workplace, it’s been challenging to find use cases where these technologies can really make an impact.

However, VR and AR have become hot trends in commercial real estate. Commercial real estate brokers and agents are using VR to provide virtual tours of available office space, allowing potential buyers and tenants to see and experience available properties.

This commercial real estate trend really took root during the COVID-19 pandemic, as face-to-face meetings were deemed unsafe. Still, as more workers and investors have spread out across the country, the need to be able to offer virtual tours has become more important than ever.

Additionally, using augmented reality technologies in the office sector allows professionals to work in interactive environments where people can collaborate using virtual objects. Augmented reality involves special glasses that overlay interactive digital objects across the user’s view. The user can manipulate these objects, and in group settings, multiple people using AR glasses can work together to manipulate objects in the same room.

Enhanced Security

Security technology is another hot topic among commercial real estate trends. Security at commercial properties is vital since commercial properties can encompass businesses that deal with sensitive data and living areas for tenants renting apartments or condos.

To add to the challenge of ensuring security at a commercial property, employees, customers, vendors, delivery professionals, and others often enter and exit these spaces during the day. With all this traffic, protecting commercial properties with appropriate security measures makes sense.

Although key card and PIN code systems have been in place at many commercial properties for decades, the smartphone era is changing how commercial property managers secure entryways. Some commercial properties have used security systems that rely on facial recognition and communication with mobile devices to allow access to properties.

Modern security systems can either automatically activate when an approved device is within a certain distance of a door or when the user scans a QR code displayed on the device’s screen.

AI also appears here, and AI security systems are being used increasingly among commercial properties. These systems employ the aforementioned facial recognition, but they can also spot weapons under clothing items or note suspicious packages that have been left unattended for long periods of time. These security measures can be very useful when managing a large commercial property in busy business areas of crowded cities and downtown areas.

Tenant Portals

When managing a commercial property, you will likely deal with many tenants. Whether you manage apartments and condos or office buildings, communicating with tenants and offering a way for them to contact you and your management staff is important for several reasons. Solid communication can increase tenant satisfaction with their experience at your property, and issues can be resolved faster when you communicate efficiently.

Commercial property managers are increasingly relying on tenant portals to facilitate better communication. These are online spaces where tenants can log into an account and manage their experience with your property and staff using a computer or mobile device.

Tenant portals often feature the ability to pay rent online, report problems to management, receive notifications from your office, and chat with your team members or an AI chatbot in real time. Another benefit of tenant portals is that one portal can be set up for your company to use across multiple properties. Each tenant gains access to a personalized account. Still, you and your team can access the system's back end to communicate with and manage relationships with tenants across all of the properties you represent.

What Does the Future Hold?

When looking at the future of commercial real estate technology trends, Internet-connected tech will likely continue to play a large part in the everyday lives of property owners and managers. These technologies offer convenience and security but provide access to software-as-a-service (SaaS) applications via the web. SaaS technology allows commercial property managers to greatly expand their access to software that can be used to manage people and properties more effectively.

Additionally, hardware technology innovations and upgrades will likely play large roles in managing commercial properties. For example, commercial property managers use drone technology more often to inspect existing properties and scout locations for potential new construction or investment.

From a vantage point in the sky, drones can take high-definition pictures and videos that offer a unique perspective on potential development opportunities. Property managers can also use drone technology to inspect for maintenance and repair needs at properties that contain areas that are difficult to access on foot or land vehicles.

Contact SERVPRO® for Solutions to Commercial Property Maintenance Challenges

SERVPRO of Arcadia provides real estate professionals and commercial property managers with solutions to restoration challenges. We’re always on top of the latest technology. We're your partner when you need experts to provide restoration and cleanup services in and around commercial properties throughout Southern California.