Technology Can Help Firms Weather Slow Markets

Technology and innovation can help the commercial real estate industry offset the effects of a slowing economy and global competition. That’s the prediction from some industry experts, who suggest that companies that are willing to innovate will be better positioned to weather the current real estate slump.The nation’s commercial real estate market continued its downward trend in the past three months, according to the latest PricewaterhouseCoopers Korpacz Real Estate Investor Survey . The report notes that “A weak economy, the credit disruption, job losses and a wide pricing gap” have vacancy rates climbing and property values dropping across much of the country, particularly in the office and mall sectors.

At several recent real estate conferences nationwide, the focus has been on software and automation technology. Proponents say these tools can help building owners and managers streamline operations and accounts, especially if they install “smart building products” such as wireless Internet, automated lighting and heat controls, and remote access to maintenance programs.

More and more tech companies are introducing products and services that capitalize on the commercial real estate industry’s need for maps and other forms of location-based information. Microsoft, for instance, recently introduced a Virtual Earth 3D program, which uses building models fashioned from photographs to create realistic virtual perspectives of buildings and neighborhoods. It’s designed to compete with the popular Google Earth.