Augmented reality technology is rapidly growing. The technology can mean both opportunity and some potential problems for property owners, depending on how it is implemented. First, property managers are recommending that property owners for all commercial properties start including augmented reality provisions in lease terms. In the long run, though, augmented reality could prove to be a additional income stream.

“One thing that we are watching closely, and I think that we are one of the first firms that have it in our property management agreements is augmented reality, which I call the Pokemon Go theory,” Kevin Rude, director of real estate services at Colliers International, tells GlobeSt.com. “That is the next wave that is going to hit the Los Angeles and New York markets, first. I think that everyone needs to be prepared for that as well.”

Augmented reality is still a new concept, and right now, there are few rules. “It is the Wild West,” says Rude. “We are counseling our clients.” The early manifestations of augmented reality have come in the form of building advertisements. Because most leases are silent on the topic, tenants have had the ability to take over the exterior walls.” There may a building with augmented reality advertisements, and the owner might not even know,” says Rude. “We are talking to our ownership about controlling that space on their contracts and building platforms as well as in their leases.”

The biggest question: who gets the advertising revenue? That is currently a question mark for owners who haven't negotiated these deals; however, this also presented opportunity. “At some point in time, we think this is going to be a pretty good revenue source for owners. That is the next step, and it is coming fast,” says Rude. “So, we are counseling owners to be ahead of it rather than being reactive.”

Revenue potential aside, owners also need to consider the branding of the property, and ensure that any augmented reality experiences won't negatively impact the brand. “If a tenant puts something up on the building, it could damage the brand. We want owners to be knowledgeable and to take the appropriate steps to protect themselves from a contractual and financial standpoint,” says Rude.

So far, few companies have taken issue with these new lease provisions, and for most companies, it isn't on the radar—yet. “Tech companies might balk at it, but for a standard tenant, it probably isn't on their radar yet,” says Rude.