Commercial Real Estate Tech Trends in 2020
With 2019 completed, we’re looking forward into the new year. In 2020 we can expect some very interesting technology trends to saturate the commercial real estate market.
Some commercial real estate tech trends for 2020 include blockchain, augmented reality, artificial intelligence, and proptech platforms.
2020 Commercial Real Estate Tech Trends
1. Augmented & Virtual Reality in Real Estate
Over the past two years we’ve discussed the changing retail landscape.
With the rise in e-commerce, brick and mortar retail revered with experiential retail. Then, they elevated the retail experience with augmented reality. In 2019 we noticed augmented and virtual reality became a tool for real estate. It’s no longer exclusive to retail companies.
Virtual reality is being used to market real estate to clients. With virtual reality clients experience a 3D image or environment, in a way they never have before. This technology allows clients to experience a property without going to the physical location.
Augmented reality is a similar interactive technology. With augmented reality there is the ability to provide key information about surrounding commercial properties, in any given area using geo-location.
We expect to see an increase in virtual and augmented reality platforms in 2020.
2. Proptech Platforms For Commercial Real Estate Professionals
Proptech, short for “property technology” isn’t a new concept to the real estate industry. Though it’s been around a few years, the technology is seeing a rapid evolution in platforms.
In 2020 we can expect to see a rise in platforms that remove the friction between tracking real estate transactions and data.
Platforms like VTS, give property owners and brokers a single place to manage transactions.
Another platform, Juniper Square, creates an efficient way for commercial real estate investment firms to raise and manage capital for projects. The platform consists of a CRM and various productivity tools.
3. Blockchain Technology
In 2018, we brought you a video discussing the emergence of cryptocurrency and blockchain technology, as commercial real estate tech. You can watch the video here.
For 2020 we expect blockchain technology use to increase in real estate transactions for a few reasons including:
• Reduces the Possibility of Fraud: Fraud in any transaction will always remain a possibility. Blockchain technology minimizes this risk with “smart contracts.” Smart contracts can link digital property ownership and other documents to the blockchain. Once encrypted, the documents are impossible to alter.
• Less Red Tape: Real estate transactions involve a lot of paperwork for all parties involved whether it’s tenants, brokers, owners, or buyers. Blockchain makes this process more straightforward with smart contracts.
• Obtaining Relevant Property Information: Blockchain stores all the necessary property information and credentials of the parties involved. Additionally, records can be updated at any time without the approval of intermediaries because each change is recorded. With this, obtaining updated and relevant property information is a simple and faster process.
4. Artificial Intelligence For a Personalized Experience
Artificial intelligence (AI) is becoming used in many things we do. AI is the practice of intelligent machines that work and react like humans. How we shop on Amazon, search the web, curate our playlists and more is due to artificial intelligence (AI), and it’s algorithms. The algorithms help personalize experiences to our liking. The same trend is happening in real estate.
AI algorithms will have a huge impact in ways we market to clients. For real estate listing websites, or mobile apps, providing clients with personalized recommendations to their ideal home, or commercial property, will make for a good user experience.
AI in property management will help keep track of property listings, tenant applications, maintenance requests and more. Long gone are the days of a property manager sifting through plenty of information. AI algorithms can help with monitoring and predicting trends in property prices, maintenance costs and more.
For 2020 we expect to see more emerging companies related to AI for real estate use.
Ron Koenigsberg is the president of American Investment Properties, Garden City, N.Y.