Technology and automation are becoming more ingrained in our daily lives. These tech trends are also continuing to make their way into commercial real estate. Since the Covid-19 pandemic, we have seen more adoption of virtual and augmented reality. Now, there are even more trends to keep an eye out for.
Here are 4 commercial real estate tech trends to watch in 2023 and beyond.
1. Greater Adoption of Virtual and Augmented Reality
As mentioned above, virtual and augmented reality technologies are becoming sophisticated. We expect this technology to become used in commercial real estate over the coming years.
This augmented reality technology has the potential for various purposes. Its purposes range from virtual tours of properties, virtual design and visualization, virtual leasing, and sales presentations.
Virtual tours have become more widespread within real estate. Buyers enjoy the convenience of viewing the property and engaging with the broker in real time, from the comfort of their home.
Virtual tours are often performed live. But, they can also be recorded sessions for interested buyers to view. For busy real estate investors and brokers, this can be a huge time saver.
2. More Use of Data Analytics & Artificial Intelligence
In 2023 and beyond, commercial real estate companies will invest in data analytics and artificial intelligence (AI).
Data analytics will help firms gain insight to make more informed decisions about their property portfolio. The use of the technology ranges from analyzing data on market trends, tenant behavior, and property performance, among other things.
Artificial intelligence (AI) is useful for streamlining a range of tasks needed for property management. This can include tenant screening, lease administration, and maintenance and repair requests. By automating these tasks, property managers can save time and improve efficiency. This improves the experience for both the landlord and tenant(s).
Other ways AI can transform the real estate sector is to:
Generate better real estate leads
Hire smarter real estate agents
Speed up real estate transactions
Make better real estate investment decisions
3. Greater Use of Automation and Robotics
Robots and automation were once thought to be inventions in a distant future, but not anymore. Robot technology is becoming more advanced. We expect its use in the commercial real estate industry to streamline processes and improve efficiency.
For example, robots may have duties that include cleaning, maintenance, and security. While automation can handle tasks such as lease management and tenant communications.
4. Furthering The Green Initiatives
Climate change is a topic of concern for most people. In recent years there have been policies and a lot of attention to combating climate change. This attention is growing in commercial real estate as well.
In 2023, the use of sustainable building materials and HVAC systems that use less energy are some ways in which companies are going green. Also, solar power use in commercial buildings will become more standard.
On January 1, 2023, California required most new commercial properties, and high-rise residential projects, to include solar power and battery storage. Nationally, there is a goal to reach 100% carbon emission-free electricity by 2035.
In a report by CBRE, solar power has its benefits for energy reduction.
According to CBRE, solar systems can reduce a building’s reliance on grid-supplied electricity by as much as 80%. Often, they can offset the electric bill by up to 95%. This lowers the tenant’s cost of occupancy. Lower energy costs and clean energy can be attractive to potential tenants and encourage longer-term leases.
Over the last decade, there has been an upward trend in commercial solar installations. The forecast for solar use within commercial properties is positive.
There are many exciting trends and real estate tech now being adopted in commercial real estate. In 2023 and beyond we can expect to see more virtual and augmented reality used by real estate agents and interior designers.
Data analytics, artificial intelligence, and robot automation will continue to grow among larger companies. And lastly, we expect more green initiatives to impact the commercial real estate space as new policies are passed across the U.S. , and more property owners realize cost benefits.
What commercial real estate technology trends do you expect to see in 2023? Which trends are you most excited about?