Commercial real estate technology, or PropTech, has attracted huge financial investment (while continuing to claim global intrigue by leading investors) in recent years. In the United States alone, over $6 billion has been raised by PropTech companies who are disrupting the global real estate industry.
According to industry research, the global real estate industry is still roughly 5 years behind the technology curve, which is largely represented by $11 trillion dollars worth of real estate that’s still managed on spreadsheets.
So clearly, there remains work to be done for commercial real estate, and that's largely in terms of embracing technology and avoiding being disrupted by the wave of innovation that will continue to enter the global real estate market. We’re not fully there yet with regards to legitimate PropTech adoption but we’re close. Things are shifting in the right direction.
The US real estate market is leading the pack in innovation investment and smart technology adoption, and it’s a path the rest of the world is beginning to follow towards future proofing growth, and shaping real estate businesses around technology.
The beauty of commercial real estate businesses adopting technology goes beyond improving business operations – it empowers all stakeholders in ways that traditional property management systems couldn’t ever achieve.
PropTech has revolutionised the way buildings are bought, used and managed. In many instances, construction costs are being reduced and daily interactions with buildings and their occupants are streamlined by cloud-based solutions.
PropTech companies (namely cloud-based real estate software providers) are holding up their end of the bargain in terms of enhancing the entire real estate industry, and it's commercial real estate that’s experiencing a sizeable amount of change because of innovation.
A report out of the Altus Group – a Canadian firm who provide software and data solutions, as well as advisory services to global commercial real estate firms – highlights that the major area of PropTech disruption moving forward include urban planning, design, construction, sales, leasing, property management, sustainability, and even data analytics.
Technology platforms are now providing an all-in-one destination to perform all property and real estate related tasks. For commercial real estate professionals and investors, there are now solutions that provide everything their users need to manage their portfolios and facilitate micro and macro business growth.
In a commercial property management setting, cloud-based property management software providers are investing heavily in developing and enhancing their product suites to provide workplace mobility (otherwise known as information mobility) so work can be done anywhere, anytime, and on any device. Speaking of further technology development, we have just launched our newest app, which users can pair with our Landlord (Owner) and Tenant app to offer a multi-pronged mobile app suite to their customers.
PropTech platforms, such as commercial property management software and their apps, unite all stakeholders by providing key visibility into business-wide health and granular portfolio performance. Without harnessing technology that's built around increasing efficiency and automation, it can be challenging to truly achieve your business objectives to keep up with the ever-changing global real estate landscape.
With cloud-based technology property accountants, property managers and owners can access and view detailed information at a click of a button, which helps to decrease risk and increase efficiencies around high-level decision making processes.
If your competitors are uniting their stakeholders with PropTech and you're not, therein lies a major commercial issue that has put your business on the back foot. Adopt quickly, be the leader of the pack, and good things will ultimately manifest for your real estate business or investment portfolio.
No longer are commercial real estate stakeholders constrained by traditional platforms that impede growth and limit the rate that work gets done. Robust cloud-based PropTech technologies bring accounts, lease management, inspections and maintenance, accounting, compliance management, tenant communication, document storage and reporting into one unified system.
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