The commercial real estate industry has historically been slow to adopt new technologies, lagging behind other sectors in terms of innovation. However, with the rise of proptech and the advent of artificial intelligence (AI), the landscape is rapidly changing. Proptech has the potential to completely transform how stakeholders operate and conduct transactions in the commercial real estate space.
Exploring the impact of AI and technological tools on the industry reveals fascinating developments, particularly in the modernization of real estate investment management and the integration of virtual, augmented, and mixed reality into the built environment. It’s crucial for leaders in the commercial real estate industry to recognize the importance of selecting effective and interconnected solutions that can deliver a return on investment (ROI) and foster connected communities. Let’s delve into the exciting possibilities and opportunities that proptech brings to commercial real estate.
Enhancing Commercial Real Estate Through AI and Proptech
Traditionally, the commercial real estate industry has relied heavily on personal relationships. However, the advent of AI and proptech is reshaping the way business is conducted. Contrary to initial concerns about job displacement, these advancements have proven to be productivity boosters, cost reducers, and facilitators of deal discovery, research, and closure. Leveraging AI tools allows stakeholders to streamline their operations and gain a competitive edge.
One area where proptech is making significant strides is in real estate investment management. While many firms have been slow to adopt new tools, a foundational approach to technology implementation is essential for future tech deployments to flourish. By focusing on essential products, software, and integrations, each solution can reach its full potential and foster a sense of community connectivity desired by both associates and residents.
“From construction to leasing, planning, occupation and investment, the world of commercial real estate is being revolutionized by a host of cutting-edge companies and technologies. These aren’t fads or trends that are far off in the future: They are happening now. It’s already at the point of manifestation,” says Alex Lange, VP of Strategy and Innovation at the National Association of REALTORS.
Access control is another critical aspect of modernizing commercial real estate. Legacy systems that were offline and not integrated with property management software are becoming outdated. Cloud-based systems utilizing physical credentials or mobile passes provide hands-free access, improving security and convenience. Frictionless platforms with smart access locks and control panels, integrated with property management software and other systems, offer standardized processes, reporting, and oversight. At the property level, these platforms enable customization, seamless access management, and streamlined self-guided tours.
Furthermore, the use of video intercoms and surveillance cameras enhances security by allowing remote monitoring of entry gates, access points, and amenities. These technologies ensure that only authorized individuals, such as staff, residents, vendors, and guests, can access common areas.
Integrating Mixed Reality in Commercial Real Estate
The application of virtual, augmented, and mixed reality (XR) devices and environments is gaining momentum in the design, construction, and management of cities and buildings. The gaming industry, with its extensive technological capabilities, is paving the way for XR’s impact on the built environment. The sales revenue of the gaming industry exceeds that of the music and cinema industries combined, with over 2.5 billion gamers worldwide.
The convergence of real estate and XR technology offers new possibilities and opportunities. Digital models used in architecture, engineering, construction (AEC), and real estate are created using the same technology found in popular games like Fortnite and Minecraft. These digital spaces enable virtual real estate walk-throughs, enhancing the visualization and communication of real estate assets. Clients can experience the space of a building in virtual reality, supplementing or replacing traditional broker services.
Digital twins, which are virtual replicas of physical buildings, offer property management benefits. They enable real-time monitoring of building systems and security, optimizing efficiency and maintenance. Additionally, XR facilitates cross-disciplinary collaboration and training for designers, engineers, and developers. By bringing together stakeholders in immersive virtual environments, XR technology promotes innovation and fosters efficient decision-making.
The Future of Proptech and Connected Communities
As the commercial real estate industry continues to embrace proptech, it is crucial to select solutions that work well together and enhance the value of other implemented technologies. Property operations can be streamlined, and residents can be empowered through the deployment of key tech building blocks.
The future of proptech lies in the development of interconnected systems that create truly connected communities. By integrating AI, access control, and XR technologies, commercial real estate stakeholders can leverage the power of data, automation, and immersive experiences to enhance productivity, improve security, and create engaging environments. The adoption of these technologies may require an initial investment, but the long-term benefits, including improved efficiency and tenant satisfaction, make it a worthwhile endeavor.
Ultimately, proptech is revolutionizing the commercial real estate industry by embracing AI and integrating emerging technologies like XR. From real estate investment management to access control and virtual experiences, the impact of tech on the industry is profound. CRE stakeholders should prioritize the selection of effective and interconnected solutions that enhance the value of other implemented technologies- smart, proactive security solutions can pair with self-guided tours at multifamily communities, for example.
When a community or other commercial property takes full advantage of the available proptech, they can create connected communities, streamline operations, and provide advanced experiences for residents, associates, and guests. As the industry continues to embrace proptech at industry events like BOMA 2023’s International Conference and Expo and Realcomm| IBcon 2023, the possibilities for transforming commercial real estate are endless, promising a future where tech works together with human relationships to shape the built environment.
Interested in putting ECAM’s live video monitoring and associated smart proptech property management tools to work at your property or next CRE project? Contact us today and speak with a commercial real estate security specialist.
