How we live, work, and interact with the structures around us is facing an evolution. Here are a couple of ways technology is reshaping Commercial Real Estate (CRE), and how to stay ahead of the trend.
The Adaptation of CRE Technology and Other Industries
Technology has forever changed the world we live in today. Historically, those who survived and flourished during times of technological expansion were those who were quickest to adapt.
At the time, Paul Revere was the most effective source of news – until technology evolved.
Commercial real estate technology is transforming similar to how technology has changed news, media, and shopping.
A combination of STRATAFOLIO and QuickBooks provides owners the ability to transform from a Paul Revere to Jeff Bezos of commercial real estate.
This has been seen, firstly, through the transformation of how we shop, with the introduction of e-commerce platforms such as Amazon. Secondly, in how we communicate, with the evolution of telephones, social media, and video chatting platforms. Thirdly, in how we digest the news, through the transition from Paul Revere, to printed media, to online media. And, the list goes on.
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Traditional Commercial Real Estate
Many investors are drawn to CRE through the illusion of the infamous “passive income.” However, once involved, many realize that CRE is anything but passive. Investors carry the responsibility of locating investment opportunities, closing the deal, arranging showings for lease and/or resale, day-to-day property management, and other associated responsibilities. In addition to these responsibilities, investors must also be able to focus on what matters most – how their investment is performing and what adjustments need to be made. And, staying in communication with their partners and investors.
⏩ Tip: A combination of STRATAFOLIO and Quickbooks provides an effective solution to control CRE financial responsibilities in one place. CRE Technology is here to stay.
“One way to reasonably and responsibly cut down on tracking your real estate investments is to utilize technology.”-Sean Ross, Editor in Chief for an authority blog and blog contributor to QuickBooks Small Business Centre where he writes about topics dedicated to private business owners, advisors, and investors
Not only does a portfolio lacking the integration of technology consume your schedule, but it also hurts your bottom line. A chaotic workload takes focus away from the owner’s focus and needlessly wastes crucial resources, in the form of money, time, and mental clarity.
Integrate these innovative tools to help you reduce your workload, and get back to what you do best – investing and growing your portfolio. CRE technology promotes growth, automation, and efficiency.
Market Analysis and CRE Technology
Historically, real estate was a local game. One had to be familiar with the area, invest locally, and gather information from their neighborhood mailman to figure out which areas were growing, and which were facing trouble. We can think of this as backyard, or neighborhood investing. Because of this, many owners did not have the capability to invest outside of their immediate area. This was the only way to ensure one was educated enough on the area to make the investment.
However, in today’s modern world, this is no longer the case. Currently, more than ever, firms and individuals are investing more and more remotely. Some might ask how they’re able to know so many mailmen. Well, with modern-day tools such as CBRE’s interactive map, investors are able to do market research from the comfort of their computer.
For instance, CBRE’s interactive map lets you search by market type, property type, cap rate, and just about every other metric one could imagine. This proves to be a powerful tool in the expansion of a real estate portfolio because investors are no longer limited by their geographic range. Investors can target markets and property types that suit their needs the best, and offer the best performance, rather than just picking from what is available in their local market.
However, one argument against this technological advance would be the ability to manage such remote properties. So, keep reading to learn how CRE technology enables the modern-day owner to manage from more remote distances.
Prior to the development of modern-day technology, property management was much more labor-intensive and expensive. In fact, property management started with self-management. Owners had no options other than taking time and productivity out of their business to collect rent, take maintenance requests, etc.. Their alternative was paying a property manager up to 10% of their gross rents. Most owners did not tolerate this process for long because it crippled their bottom line, as well as growth potential. This was the first realization by real estate owners that they could increase their growth. They could outsource daily tasks. However, these property management firms became expensive and increasingly less effective. Next, came the development of property management platforms.
Subsequently, these tools made it possible for owners to manage their leases, rent collection, and tenant communications all from a computer. This CRE technological advancement, not only lowered the management intensity but also made it more systematic and easier to analyze performance.
In many cases, there is no longer the need for the owner to physically collect a check each month. Instead, platforms for automatic payments to be taken directly from a tenant’s bank account.
Modern Property Management Logistics
Subsequently, some might argue against logistics, “well how do I let the prospective tenants and buyers into the property to tour them without the use of a property management or my own labor?” Ultimately, that’s no problem in today’s world.
Many brands, such as Yale and Kwikset have developed smart locks. Generally, smart locks are able to be installed in replacement to the deadbolt. Many carry American National Standards Institute (ASNI) Grade 1 locks, the highest level of security, so they are also very secure.
Once these locks are installed, if a tenant or buyer needs to be let into the property, the owner can unlock the property from their smartphone or computer. After the tenant or buyer leaves, the code can be easily reset and relocked from the owner’s cell phone.
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Analytics and Investment Management
Still not passive enough? Well, portfolio analytics and investment management can be integrated with technology for better efficiency as well.
This is where STRATAFOLIO truly shines. As we’ve discussed the less than efficient ways that the integration of technology amongst the real estate industry has fixed. STRATAFOLIO covers the last base – financial analytics management.
STRATAFOLIO integrates all aspects of your property portfolio’s financial, management, and accounting data into one easy-to-read interface. In simpler terms, Paul Revere tracks profitability through crunching financials by paper or spreadsheet. While the modern-day, most sophisticated owner, automates this to software such as STRATAFOLIO.
Once this data is automated, the owner frees up more time, and is able to focus on what’s important.
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Achieve Stronger Returns Through CRE Technology
In conclusion, CRE technology provides owners with the ability to get ahead of the trend. We’ve seen the transformation of many industries. Impacted industries range run the spectrum- from grocery shopping, retail shopping, news and media, communication – just to name a few.
And, simply put, real estate is no different. The integration of technology in the CRE arena provides the opportunity to increase an owner’s bottom line. With the use of technology such as STRATAFOLIO, our customers are able to reduce their manual activities – such as updating spreadsheets to see property and portfolio performance. Instead, they can focus on building and growing their business.
Let us know your thoughts! What technologies have you implemented in your real estate business to help make your team more effective?
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