Autonomous Vehicles - With the likes of Google and Uber competing furiously against each other to be first to market, each year we get closer to seeing self-driving cars becoming part of routine traffic on our streets. Modern city planning revolves tightly around transportation and the rise of autonomous vehicles will profoundly change the way cities operate, from pedestrian behavior, to the need for parking lots, to how curb space in front of commercial buildings is used. Over the next several years, autonomous vehicles will have a major impact on the CRE market.

Blockchain - A network designed around the concept of “distributed trust” in order to facilitate online transactions, blockchain is best known as the underpinning technology for cryptocurrencies like Bitcoin. However, once the technology matures, it will likely be a game changer for CRE. It has the potential to streamline real estate investments by making them safer and more liquid as well as increasing speed and reducing costs of transactions. This will also lower the barriers to entry in markets where there are few REITs, giving investors access to new opportunities.

Drones - Drone technology has been slow to proliferate in the CRE industry. As the technology becomes cheaper and more efficient, there will be a substantial uptick in drone use for aerial surveying of buildings and their outdoor areas, providing a more effective way for security and maintenance personnel to monitor large areas.

Localized Energy Sources - On-site energy generation allows buildings to be more sustainable and resilient by creating their own energy and reducing dependence on the grid. The increase in tax credits and rebates for renewable generation have made on-site electricity generation much more accessible to building owners and property managers. The continued push for buildings to decrease waste and CO2 emissions will further incentivize owners to invest in outfitting buildings with solar panels and other sources of renewable energy – potentially moving the industry closer to being a producer rather than a consumer.

Robotics - By replicating human actions at tremendous speed, scale and quality, all at a lower cost, robots are helping to reduce human error and increase operational efficiencies in many industries. Although the CRE industry has been slower to adapt to technology changes due to the expenses involved with changing infrastructure, robotics are expected to play a significant role in reducing construction labor shortages and creating a new class of careers that interface with them.

Although the CRE industry has a reputation for being slow to change, market pressures and new technology are advancing asset management at an impressive pace. 2019 and the years that follow will be transition years for the CRE industry as building managers and building engineers continue to invest, implement and integrate new technologies into their systems, processes and infrastructure. 

Logan Soya is the CEO and founder of Aquicore, a real estate software company whose platform analyzes and predicts key building performance in real time to streamline business operations and increase property value and operating income. The views expressed in this article are the author's own and not those of ALM's Real Estate Media Group.