The commercial real estate industry is constantly evolving, and the technological advancements being made are playing a big role in these rapid changes. From data analytics to virtual reality, these new types of technology are important to understand, as they could become our new standards in a matter of no time. In this blog post, we will explore four key types of tech that are making a significant impact on the industry, and discuss what their implications could mean for the future.

1. Artificial Intelligence (AI)

Artificial Intelligence has emerged as a game-changer in various industries, and commercial real estate is no exception. AI-driven technology has the ability to help investors analyze vast amounts of data quickly and accurately, enabling them make smarter investment decisions at a faster pace. Machine learning algorithms can identify patterns, predict market trends, and even assess property values based on historical data. AI-powered chatbots are also revolutionizing customer interactions by providing instant responses to inquiries and streamlining property search processes.

Looking ahead, AI is expected to enhance the efficiency of property management by automating routine tasks, optimizing energy consumption, and improving tenant experiences. TermSheet’s ETHAN tool is just one example of a new, AI-based technology that was built for real estate professionals and can take over the specific types of tasks they handle each day.  

2. Internet of Things (IoT)

The Internet of Things (IoT) is another technology that is rapidly transforming the commercial real estate sector. IoT devices, such as sensors and smart meters, can collect and transmit real-time data about building operations, energy usage, and tenant behaviors. This data is able to help investors identify areas for improvement, optimize resource allocation, and enhance sustainability efforts.

Furthermore, IoT-enabled buildings offer improved tenant experiences through features like smart lighting, automated temperature control, and seamless connectivity – meaning the property owners who outfit their properties with this technology can achieve higher occupancy. Therefore as the IoT ecosystem expands, investors can expect increased demand for smart buildings and the integration of IoT technologies into existing properties.

3. Virtual and Augmented Reality (VR/AR)

Virtual and augmented reality technologies are revolutionizing the way investors and tenants experience commercial real estate. VR allows potential buyers and investors to virtually tour properties from anywhere in the world, saving time and resources. It provides a realistic representation of spaces and can simulate various design options, enabling stakeholders to make well-informed decisions.

On the other hand, AR enhances the physical environment by overlaying digital information onto real-world spaces. This technology can be used to showcase property features, provide interactive experiences, and aid in the design and construction processes. VR and AR are expected to become integral tools for property marketing, investment analysis, and design in the future.

4. Blockchain Technology

Blockchain technology, famous for its association with cryptocurrencies, is also making waves in the commercial real estate industry. By leveraging blockchain, investors can streamline property transactions, reduce fraud, and enhance transparency. Smart contracts, powered by blockchain, can automate the execution of agreements, ensuring that all parties adhere to predefined terms.

Blockchain also enables fractional ownership, allowing investors to buy and sell shares of properties, enhancing liquidity and opening up opportunities for smaller investors. Additionally, blockchain-based property registries can simplify the title transfer process and provide a secure record of ownership.

The Future of Commercial Real Estate Investing

As these emerging technologies continue to evolve, Investors can expect increased efficiency, accuracy, and transparency in their operations. AI will play a vital role in decision-making processes, while IoT devices will optimize resource utilization. VR/AR technologies will enhance property marketing and design capabilities, while blockchain will revolutionize transaction processes.

As investors start to embrace these technologies, they will ultimately gain a competitive edge, be able to make better-informed decisions, and contribute to the overall growth of the industry. 

One of the best ways you can stay ahead of the changes technology is making in our industry is to work on a cutting-edge, all-in-one solution like TermSheet. Our platform provides real estate teams all the tools, automations, and flexibility they need to work faster and modernize the way they operate. Our team works hard to stay at the forefront of technological advances within the real estate industry, so our users always have access to the latest and greatest innovations that hit the market.