Frank Farricker explores the changes technology has wrought in the commercial real estate industry

Technology applications in commercial real estate have come a long way over the past decade. Online listings and 3D virtual tours are just a few examples of the technological innovations that have marked commercial real estate.

Frank Farricker, a real estate manager from Greenwich, Connecticut, shares many of the ways technology is changing the landscape of the commercial real estate industry and how agents can take advantage of these innovations for themselves.

Artificial intelligence

Artificial intelligence and machine learning allow commercial real estate professionals to take advantage of increased computing power. They are able to analyze their properties and customer data in order to gain valuable insights. It can also help with sales and marketing by helping to personalize the messages each potential buyer receives from the real estate company. Additionally, it can analyze sales records to compile buy and sell recommendations.

AI-powered solutions can help real estate agents manage office and industrial spaces more efficiently. Data from Internet of Things (IoT) devices and Wi-Fi sensors enables real estate professionals to provide insight into appropriate occupancy levels and space utilization.

5G communication

5G rollout has been slow across the country, but it has incredible potential to help real estate companies do their jobs. 5G connectivity will help real estate companies communicate and send files almost instantly, increasing the bandwidth of their mobile devices and making it easier to access information. Owners will also be able to monetize their buildings in new ways through the installation of new 5G towers.

Changes in closing and presentation processes

The COVID-19 pandemic has had major effects on the commercial real estate agency. Today, mobile technologies allow agents and tenants to perform the tasks associated with closing remotely. This reduces delays due to restrictions and can be much more convenient than traveling to remote locations.

Reduction of personnel costs

Technology saves commercial real estate professionals time and money. Using electronic means for marketing, sales and other tasks means that fewer staff members are used to do the same amount of work.

Tenant Screening

It is much easier to screen tenants online by accessing their business information and background check websites. While selecting tenants used to involve a lot of legwork, today it’s as simple as the click of a mouse. This represents another significant source of cost savings for commercial real estate professionals.

Social networks

Frank Farricker notes that social media has become a big factor in commercial real estate. While business-to-business sales and leases are less common on social media than residential sales, commercial real estate is increasingly tied to platforms like Facebook and LinkedIn.

Social media is often used to browse images and product information, and it stands to reason that many people looking for commercial property will also want to use the platform.

Greater digital visibility

It is much easier to promote properties online. Commercial real estate professionals can find willing buyers for their offers because it’s easier to find what they want. For buyers, it’s easier to narrow down the list of properties they want to see in person. This saves time and effort for agents and buyers.

Work from home options

Many real estate professionals now work from home at least part-time. This allows them more flexibility in their daily lives when it comes to work-life balance. Many real estate agencies continue to allow their employees to work from home or in hybrid situations to accommodate their personal lives. Technology has facilitated this change in the industry.

How to Adopt New Technology

According to Frank Farricker, the first step commercial real estate professionals should take is to develop a technology adoption strategy. This strategy should define areas where the business could improve its operations and anticipated areas where technology might be able to help.

For example, a business that is struggling to attract new leads may be interested in doing more promotions through multiple online SEO sites and through social media.

Second, businesses must lead the way in technology adoption. They may need to combat outdated notions about the types of technology useful in real estate. For example, some older agents may be reluctant to use AI systems for fear that they are too complex or difficult to use.

Finally, real estate companies should develop a plan for acquiring and adopting new ideas, software and equipment. Turnkey software solutions are available for real estate companies, but some companies choose to build their own systems.

The ongoing effect of technology on commercial real estate

Technology will continue to have increasingly exponential effects on commercial real estate. Professionals like Frank Farricker of Greenwich, Connecticut, are eager to introduce their clients and colleagues to the latest technologies helping to revitalize their industry.

This article does not necessarily reflect the views of the editors or management of EconoTimes