Transforming the real estate industry with technology
Technology is impacting the real estate industry in profound ways. But perhaps not in ways most tech “experts” thought it would.
If you follow the tech sector in general, you know how it has impacted other big industries like financial services, healthcare, transportation, retail, hospitality and so many more. It has been a game changer for those sectors, in both good and bad ways. Huge companies have been built and that has created enormous efficiencies for the end-user, but with this change inevitably comes loss. In many cases it means loss of jobs for those caught in the middle.
In the real estate sector specifically, the impact of tech has been every bit as profound as other sectors, but in vastly different ways. The impact has been less disruptive, but just as powerful because of the unique nature of the sector. In real estate, “people” still perform the most essential function of providing advice, counsel and strategy to their clients. And that will never be changed. No one will actually lease space or buy a property on purely an algorithm and without consulting a real live human being that has expertise in the field. It’s just too big of a decision and there are way too many variables at play.
We are starting to see the real traction from tech sites and apps within the real estate industry. But the impact is less about eliminating jobs and changing the way the industry functions and more about changing the way the professionals in the field actually work. That’s where the profound impact has been.
Here are a few of the most obvious ways technology is now impacting the real estate sector, specifically the commercial side of the business:
Transparency
With so many websites providing so much information to anyone for free, the greatest impact that is being seen is the proliferation of the public aggregation of information. While we have yet to see someone build one centralized and searchable database or the “google” equivalent of real estate information, we are well past the point where data and information can be hidden behind paywalls/subscription models. Dozens upon dozens of sites are now curating data, availability, pricing and more for the entire sector to search.
Speed
It used to take months and months to close a transaction. But sites like Property 24 and Private Properties have dramatically reduced this length of time while enhancing the professional’s ability to market a property like never before. Using tools and platforms like Property 24 and Private Properties have a huge impact on expediting the deal making process.
Leasing Efficiency
Many sites are focused on equipping professionals with leasing tools that make their jobs much more efficient. Having floor plans, availability and data all organized in a mobile app is a game changer for the sector. Rather than printing out large documents that show availability, stacking, pricing etc., the updated information is all up in the cloud and essentially at people’s fingertips whenever they need to access it.
Marketing
Broadcasting your company marketing message, getting property visibility or even marketing yourself has never been easier or more cost effective. So many sites help professionals get their products and messages out to the marketplace in seconds.
Real Time Data
It used to be that the majority of research was focused on what happened in the past. Now, it has never been easier to know pricing and availability in real time. So many sites are providing immediate results on a variety of analysis and data points. In the past, research was something that only a few sites and companies had access to because it was a very costly endeavor. Those days are over! Real time data that is available to the entire industry is a HUGE game changer for the sector.
On a whole, the impact of technology on the commercial real estate sector has been significant. Its profound impact can be seen every day by professionals who are using many of these tools to make their jobs more efficient and ultimately make more money.
Many people on the outside of the real estate sector don’t understand how the industry actually works and will continue to work for the foreseeable future. I hear things all the time from “outsiders” that the real estate industry is archaic and needs to be “disrupted”. Brokers in particular, both residential and commercial, will not be replaced by technology.
When you look at technology from a different perspective and observe how it can drive efficiency, transparency and ultimately make people more money as a result, you can see where the huge opportunity is in the real estate sector. Technology is already having a massive impact on helping those real estate professionals that embrace it become more powerful, more insightful and more valuable.