From Customer Service 4.0 to Manufacturing 4.0 to Industry 4.0, there are few (if any) sectors that are not being shaken up by a technological revolution and real estate is no exception. Technology is poised to revolutionize real estate, from purchasing, to managing, to investing. It can help inexperienced investors make better business decisions, analyze trends, and even make startlingly accurate forecasts. Here are 3 emerging technologies that will have a significant impact in commercial real estate.
- Artificial Intelligence
When an investor is considering a commercial real estate investment, they may consider dozens of different factors such as zoning, transportation, communication, access, land value and historical value. Artificial Intelligence, however, is capable of analyzing millions of different factors from hundreds of different data sets. These can include things like energy costs, predictions regarding how proposed projects will affect the area or even the impact events in neighboring communities can have on the property. Granted, it still takes human intelligence to understand how to utilize the data, but it will give experienced investors more information than ever before.
- Smart Contracts
One of the main drawbacks to real estate investment is the associated costs and fees generated any time a property changes hands. Just a single residential transaction can generate thousands of dollars in fees, with commercial transactions sometimes generating more. There can be as many as 20 different parties involved in the transition, all of whom charge fees for their services. Smart contracts are administered by blockchain, which will significantly reduce not only the number of parties involved, but the associated fees as well.
- Transportation and Parking
Parking lots alone currently consume vast acres of valuable metropolitan real estate. With the rise in car share services, the need for parking lots will dwindle vastly. Not only will this free up additional space for other commercial properties, but it will also have a significant impact on existing commercial properties. Since parking lots themselves are commercial investments, technology is also poised to make parking far more efficient as well. If you do drive, instead of spending 20 minutes or more driving around looking for parking, you can use an app to reserve a space before you arrive or see exactly what spaces are available when you get there.