As the pandemic begins to recede and the workforce gradually returns to the office, the commercial real estate industry will rely more and more heavily on proptech.
Retailers, building developers, construction companies and property managers will utilize this growing sector to create more efficient, health-promoting and sustainable workplaces.
Investors and property managers are using proptech to automate or eliminate many of their everyday and mundane tasks, and to ease the friction and lower the costs of owning and operating real property.
These tasks can vary from property valuation, completing deals, marketing, leasing and managing and can be more efficient thanks to this type of technology.
Retail real estate owners are leveraging proptech to capture information about shoppers’ traffic and movements to better understand their needs and patterns.
Property owners and managers can then use this information strategically in leasing space, enhancing shoppers’ traffic flow, generating more sales for tenants and creating a positive shopping experience.
Proptech in action
Virtual showings are the term for any home tour performed remotely and are a prime example of proptech in action.
Virtual showings can be 3D renderings of a home for buyers or renters to interact with at their convenience, or pre-recorded video tours that are published online and shared on social media.
Virtual showings can be live or done privately via video chat apps like Zoom, Skype or Facebook.
Thanks to proptech, it is estimated that six out of 10 prospective homebuyers or renters could participate in a virtual, video or remote home showing during the pandemic.
Proptech in action can also be platforms which provide centralized data management, bookings and accounting solutions. A perfect example of proptech is Yardi, a simple platform to market and manage a residential, commercial and mixed property real estate portfolio.
If you’re a property manager, you can use apps to assign work orders, track building data, share announcements with residents and collect fees and rent. Residents can use apps to book in-home services, track packages, request maintenance work and sell goods to their neighbours.
In essence, proptech is technology solutions created specifically for the real estate industry and can be used at any stage of a property’s life cycle, from planning and building to enhancing and managing to help landlords, owners and managers make the most of their properties.
What the future holds
As a developer and real estate expert, Equiton believes businesses have an opportunity to reimagine how and where work is done, harnessing lessons learned throughout the pandemic.
It’s likely the most successful organizations in real estate during the next few years will be the most tech-enabled. They will be able to deliver the highest levels of transparency for everyone involved, improving decision-making and reducing costs.
They will also streamline workflows from end to end.
We believe proptech has arrived and has its roots firmly established in real estate.
Rather than being intimidated by the rise of proptech, real estate professionals should think about exploiting it to their advantage as early adopters tend to have access to more significant opportunities.