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Commercial Real Estate Moves Into the 21st Century
Commercial real estate technology is growing fast, propelling the industry into the here and now. These advancements mean professionals can save time, effort, and costs, while increasing business and revenue.
This guide will provide you with an in-depth look at the different types of technology, including how each operates and how each helps in different aspects of commercial real estate.
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What is Commercial Real Estate Technology?
In the broadest sense, commercial real estate technology is any technology designed for and used in the commercial real estate industry, but it goes much deeper than that.
The commercial real estate industry features many different asset classes including office, multifamily, industrial, and retail. Within those industries are specific departments and roles, from real estate development to property management to transactions and leasing.
Modern technology covers specific needs and solves problems in virtually every phase of the real estate journey.
Real Estate Development Software
Today, most highly skilled development team members are burdened by low-value admin work, keeping them from focusing on the strategic direction of a project or portfolio, and preventing them from finding more opportunities to create value.
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Most project teams still rely on spreadsheets, siloed information and gut instincts to make decisions.
They also rely on unorganized records of past projects, causing them to repeat mistakes or oversights.
Made to address the common problems development teams face, proactive intelligence leverages the power of automation, data analytics and artificial intelligence to help teams make data-backed decisions and better mitigate risk.
Eliminate Tedious Tasks
Automation eliminates tedious, manual administrative tasks like data entry, manual reporting, information gathering and document filing to free up time for the strategic decisions that maximize returns.
The power of A.I. facilitates real-time data analysis, allowing project leaders to make the most informed choice on every project decision, adding up to higher returns.
With proactive intelligence, teams can be more confident that they’ll keep their projects on schedule and under budget while leveraging all of their historical data to be well prepared for future developments.
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In commercial real estate, acquiring new assets and putting together deals can be fast-paced and challenging.
Bringing together disparate data sets such as rent rolls, capital expense cost assumptions and market comparison data (for transaction costs and leasing assumptions) is often time-consuming and prone to discrepancies given the need to retrieve and reconcile data from so many sources.
Additionally, all of this information must be financially modeled so that real estate owners can make decisions about the feasibility of whether it makes sense to acquire an asset, invest in major capital upgrades, or other investment decisions about a property.
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Historically teams have leaned on spreadsheets but also more sophisticated technologies to help real estate financial analysts or asset managers make determinations about how much to invest in an asset, when to make investment decisions, and explore alternatives scenarios for value creation through real estate assets they already own or ones they are contemplating acquiring.
With technology for transactions, underwriting and asset management; real estate professionals can get the highest and best use out of properties after analyzing and modeling key outcomes for a given investment decision.
They can generate necessary reports and get to critical decisions faster, especially in markets where they are competing against other real estate firms to acquire and assemble property sites.
Facilities Management
Facility managers wear many hats—maintenance planner, contracts manager, safety handler, building security administrator to name just a few. With so many demands, they may have a difficult time juggling all their responsibilities, staying organized and maintaining operations and performance.
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Facility managers can use facility management technology to multitask more effectively
They can manage the functionality and safety of the environment, interior and exterior maintenance, and entire repair programs remotely from one system.
Facility management tools automate many of a manager’s tasks, like work orders, billing, and invoices saving them time and alleviating burdens.
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Facility management tools not only automate these specific tasks, but they improve communication between facility managers and staff through complete information transparency and data sharing. Teams can leverage the data to identify areas of improvement and increase efficiency.
A big benefit of facility management technology is cost reduction. Through accurate reporting, managers can make better maintenance decisions, prevent urgent repairs, and enhance equipment performance, saving money in the long run
Property Management
Property managers aren’t just responsible for finding tenants and handling complaints, they also handle tasks like rental applications, rental collections, facilities inspections, and property costs. On top of that, they manage property staff and scheduling.
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Overall, property managers and property management companies need to increase a property’s performance, while keeping tenants satisfied.
Property management software allows property managers, property management companies and landlords to handle daily operations of commercial rental and housing properties using one centralized system.
The technology automates tenant applications, screenings and rent collections to save property managers time. This allows them to focus on increasing a property’s performance.
Property Management tools store and organize all documentation, from leases to insurance policies, eliminating inaccurate and difficult-to-find paper files, and providing managers with instant access to important information.
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Accurate reporting of property expenses help managers stay on budget and owners stay on top of their investment.
These tools are designed to streamline the property management process by helping to manage assets, lease applications and maintenance issues, as well as organize tenants, accounts and finances.
With so many property management systems on the market, it can be overwhelming to decide which one is right. Ultimately, property management technology should give managers or landlords the freedom to direct their attention on their residents and owners.
Leasing
Leasing technology organizes a multitude of complexities by automating burdensome tasks. Property managers use the tools to gain visibility into all leases, store lease information, map rental locations, organize rent schedules and manage lease portfolios overall.
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Leasing technology also provides insights and alerts to keep track of portfolio activity, shows a complete view of financials, proposals and terms to negotiate and approve deals faster, and offers visibility into tenant relationships to improve retention.
Leasing technology is specifically designed to manage commercial real estate leasing activities. The concept seems simple, but to property management firms and landlords, it’s a huge time saver.
Current technology is solving big real estate challenges.
The tools are not only reinventing the way professionals perform their jobs, but they are also transforming the commercial real estate industry as a whole, by:
- Creating more opportunities
- Driving efficiencies
- Mitigating risks
- Streamlining the process
- Generating better outcomes
- Eliminating mistakes
- Saving money, effort and time
- Decreasing overhead costs
- Finishing projects on time and on budget
- Allowing teams to focus on more important tasks
Real Estate Intelligence is just the latest innovation in commercial real estate.
Northspyre, a cloud-based intelligence platform, is making a major impact on the way projects are delivered across the industry. Northspyre eliminates data entry and other tedious administrative tasks, provides real-time access to critical project data, generates key actionable insights, increases visibility into project metrics, and mitigates potential risk.
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