How PropTech is changing the future of commercial real estate
Property technology, otherwise known as PropTech, refers to the innovation and origination poised to disrupt the way commercial real estate processes are done. While PropTech is not a new-to-the-industry concept, a new wave has presented even more sophisticated capabilities.
Today’s PropTech is incorporating:
- Artificial intelligence (AI)
- Big data and analytics
- Virtual reality (VR) and augmented reality (AR)
- Computer aided design (CAD)
A Modernized Transaction Process
With PropTech comes the opportunity for a potentially faster, more insightful transaction process. Tools like VR and AR, drone technology and CAD now give potential buyers, investors and tenants the ability to truly visualize a space without ever stepping foot inside of it.
Blackbird—a VR and market intelligence tool—is just one of many resources being used to alter the way real estate transactions are done. Users can view actual CAD renderings of properties, narrow their search based on demographics, tax incentives, transit options and more, and view data on amenities.
With access to intelligent machines and big data, real estate brokers can streamline much of the traditional transaction process, and even match investors to a property type.
Big Data, Bigger Insights
It’s no secret that PropTech is leveraging the benefits of big data—but to what extent? Big data is closely associated with AI, which can automate building processes and give property managers insight into what’s working for their building, and what’s not.
AI and big data can provide insight into a property’s operating efficiency, financial performance and more.
Waypoint Building Group, for example, is doing exactly this with data activation, which allows for real-time reporting. Property managers can easily compare building performance year over year against the competition, and identify future opportunities to enhance their portfolio.
Staying Ahead of the Curve
Nearly $2.6 billion was invested in real estate technology companies in 2016 alone. With demand for PropTech on the rise, how are real estate companies responding?
JLL, for one, recently announced the launch of JLL Spark—a business platform focused on developing PropTech solutions for the commercial real estate industry.
PropTech solutions like JLL Spark are meant to identify and relieve pain points encountered by both real estate professionals and potential buyers. By developing and implementing smarter, data-driven solutions, investors can make more informed decisions when adding to their portfolio.