Commercial Real Estate has finally found itself immersed in the digital era. Just as in almost every other industry, technology has changed the landscape of how business is done, and has impacted just about every facet of commercial real estate. From portfolio management for investors to operations management for building owners, technology has stepped in to take the large amounts of data floating around and aggregate it so that property owners, investors, managers and brokers can make the most informed decisions for their needs. In 2020, three areas will be particularly impacted by technology: business intelligence, tenant experience and operations.

Business intelligence

Commercial real estate has always been data driven, but using this data has been a relatively manual process until recently. Aggregating and analyzing it at scale is difficult when data is stored across multiple platforms, in spreadsheets and other archaic methods that make it extremely difficult to put the information to use and make decisions based on analysis.

Platforms such as NavigatorCRE are data warehouse suites that manage data from multiple sources, enabling owner/operators, brokers, landlords and developers to track and visualize the data they need to make informed decisions.

Cloud-based SaaS platforms make it easy to access data from anywhere and often have their own mobile apps, enabling their users to be able to pull information in real-time, from one source. Look for more platforms to include everything from portfolio management to deal tracking to marketing and sales.

Tenant Experience

As discussed in previous posts, tenants have more and more influence over how commercial real estate investors and building owners operate their businesses and manage their portfolios. We are living in a mixed-use, multi-functional world, where property owners have to outdo each other in providing a unique and satisfying tenant experience. Colliers International has reported that leasable square footage used for features like gyms and on-site dining has grown to around 10%. 

To stay on the edge of which amenities provide the greatest ROI, there needs to be a way to collect data on usage of the amenities and how that compares to the cost of operating and offering those amenities. That’s where platforms like HqO come into play, enabling property owners to manage and track tenant activity and make additions and adjustments based on the data analyzed.

As tenant experience becomes more and more competitive, having a complete understanding of what tenants want and use will be critical for building owners to be able to make wise investment decisions in property improvements and additions.

Operations

Transitioning from the strategizing perspective made possible by data gathering and management tools, another area that tech is making an impact is in day-to-day operations. In the past, tracking tenant complaints and requests was largely manual, and the odds that one would go back to analyze trends in these requests were slim to none. Now things are changing, and data can make a huge difference in running buildings in the most efficient way. 

Platforms for tracking customer complaints can help building owners and managers identify if there are any similarities or trends in service requests. Data captured by sensors can provide insights about maintenance and repairs, enabling engineers to maintain equipment based on actual usage and not just a calendar date. AI platforms can take data and predict when equipment will need servicing, enabling building managers to be proactive in their maintenance. 

Another type of tech evolving in building operations are employee management platforms, where property managers can remotely manage their maintenance and services team, saving time and money.

The overall theme in 2020 will be breaking down siloed systems of managing data to improve efficiency and decision making, enabling much more accurate decision making in all areas of commercial real estate than has been possible in the past.

What are your thoughts on the increasingly large role technology is playing in your CRE experience? Are there any platforms you have come across that have helped you in your day-to-day? Comment below!