Four Tech Trends Shaping the CRE Industry

Brandon Keedy

SOUTHERN CALIFORNIA—While rapid advancements in technology are changing the way we live, work and play, innovative tech startups are reshaping the commercial real estate industry with new tools that can cut costs, boost productivity and improve decision making, Voit Real Estate Services associates Brandon Keedy in Los Angeles and Connor Wieck in San Diego tell GlobeSt.com. We spoke with them about four technology trends that are causing these shifts in the industry.

1. Virtual reality. It’s like reality, only better, Keedy and Wieck say. A long-awaited promise of science fiction, full immersion in a virtual world has finally been achieved by innovative systems like Oculus Rift. Despite the commercial failure of ’90s-era virtual reality products, industry professionals agree that VR’s time has finally arrived: virtual reality sales are predicted to reach $40.26 billion by 2020, according to SuperData Research Inc.

   “VR technology is a natural fit for the commercial real estate industry,” Keedy and Wieck say. “It provides investors with the opportunity to view properties without time-consuming and expensive travel between locations, as well as explore spaces still under construction or even on the drawing board. Due to the high costs of virtual-reality systems, this technology is currently used mostly for high-end projects, but new innovations will make it more accessible in the future.” Investors are now looking at the efficiency VR provides to the commercial real estate industry. The capabilities of VR extend across many different platforms for the industry and, aside from touring properties through VR, companies can now utilize the technology for the tenant improvement process. Whether deciding on furniture placement, finishes, buildout or other aspects of development, VR allows companies to visualize a near-end product prior to finalizing their high-cost decisions. “As this technology progresses and becomes more popular, naturally it will become more efficient and, eventually, more cost effective,” the executives say. “VR will become a leading industry service used more often than not.”

2. Artificial intelligence. It’s the dawn of the artificial-intelligence revolution, and machine learning is already making commercial real estate more profitable. AI is technology that enables computer programs to perform tasks that normally require human intelligence, allowing computers to sense, comprehend, take action and self-improve.

   “Insights from AI can help CRE professionals close more deals by providing valuable financial, property and market data, as well as guidance about best practices for agents,” the Voit brokers say. “AI can boost productivity by structuring data and information (such as on leases, nondisclosures and partnership agreements), locating key points from documents, identifying missing or incomplete data, and simplifying fiscal reporting. Beyond this, the automation of different processes, such as drafting a proposal, will become a feature AI can produce. Given the specific data points needed within, AI has the capabilities of integrating its intelligence to populate and produce these documents.”