The commercial and industrial real estate industry is undergoing an evolution. As many industries adapt to the disruptions caused by new technologies, real estate ventures into new territory. Headed by developments in real estate technology trends, innovative technology is changing how we manage, rent, and engage with our properties.
Moreover, the growth in facility and maintenance management software has brought automation, AI (Artificial Intelligence), or IoT (Internet of Things) to an industry in need of innovation.
According to the JLL’s report „Transform with technology: Shaping the future of real estate” published in 2021, during the past decade, there has been a rapid growth of technology-based companies providing real estate and built environment services, with a 300% increase since 2010. The ecosystem remains relatively young, with over three-quarters of these companies founded in the last decade. The firm has identified over 7,800 companies providing technology solutions in various parts of the built environment that have raised over US$97 billion of equity funding in the past decade.
Investment in CAFM systems (Computer-aided Facility Management) and other technology in facility management is causing exponential growth in new trends. But how can PropTech solve your building management and operations needs?
We’ll discuss the top real estate technology (PropTech) trends and how they can benefit your commercial real estate operations.
- IoT and Automation
- Artificial Intelligence
- Big Data in Real Estate
- Health-centered Solutions
- Virtual and Augmented Reality
Real Estate Technology Trends
1. IoT Sensors and Automation
IoT is a system based on constantly connected “smart” devices and applications to cloud-based software. It’s estimated by 2030 that the number of connected devices worldwide will be 25.4 billion. Automation can streamline processes without the need for consistent human attention. IoT for building management combines with automation to offer facility, property, and asset managers, owners, tenants, technicians as well as other real estate professionals innovative solutions to common problems.
Automatic Data Monitoring and Record Keeping
Through continuous data recording, IoT can provide up-to-date maintenance records and property history. Sensors implemented in the facility can collect a wide range of data about the building's conditions, including temperature, humidity, air quality, people presence, and many more. Automated data monitoring provides complete viability and system access, and quickly communicates problems.
With smart devices transmitting information, building managers as well as technicians can get notifications on any problem areas and conduct repairs quicker and cheaper. Integrating Internet of Things with CAFM and CMMS solutions allows you to set alarm levels for sensor readings and to get notified when they are exceeded.
Connecting Physical Spaces
Devices can connect with physical components in a property. IoT sensors, for example, beacons fixed to walls or ceilings can allow users to control indoor systems like temperature or lighting. With this technology we can better automatically control people's presence in a room, environmental conditions such as humidity, machine usage, and more. This makes it possible, for example, to introduce usage-based cleaning services and count people in the restrooms to reduce costs.
2. Artificial Intelligence
One of the biggest trends hitting real estate is AI-based systems. AI enhances many areas in building management services, from market forecasting to security measures.
Improved Customer Services
AI can improve customer services by offering quick, personalized responses 24/7. Going beyond chatbots, AI can be purpose-built to tackle specific problems and integrated into management systems.
AI-based services can improve transactions using services such as optical character recognition. Here, AI can scan documents and complete financial audits before a transaction takes place.
A useful benefit is predicting market trends and providing forecasts on where a business must focus. For example, AI can investigate data that reveals trends in renting growth rates, and which tenants show a greater chance of renewing leases.
Mobile apps are a growing PropTech trend in facility management. Property and facility managers, technicians, tenants, and other real estate professionals want access to statistics, documents, and management tools through mobile tenant portal apps. The benefits include increased productivity, storing and sending metrics between team members, and keeping track of employee whereabouts.
Manage Bookings and Business Operations
Mobile apps can remove repetitive and time-consuming tasks. Users can manage bookings, communicate with clients on the go and receive up-to-date stats.
Enhanced User Experience
Mobile apps like tenant apps provide the best tenant management software. It can improve user experience by answering their immediate questions, booking information, incurring costs, lease agreements, updated databases, and personalization.
Facility Management App
You can benefit from accurate reporting, ensure compliance, and combine different system capabilities. We have already presented benefits of mobile CAFM and CMMS systems in one of the latest articles.
4. Big Data in Real Estate
Big Data involves storage, analysis, and transmission of large quantities of data. Industrial real estate companies can leverage pools of data to make better decisions and improve operations. It is estimated that by 2025, 463 exabytes will be created each day, that’s around 212,765,957 DVDs.
Real estate companies can process vast quantities of data to predict human behavior, thereby tailoring property searches to suit customer needs. A process called data mining breaks down large quantities of data to reveal patterns and trends.
PropTech plays a tremendous role when it comes to ESG, and people are starting to realize this. ESG stands for environmental, social, and governance. These metrics are key to how businesses operate today. Smart technologies have the potential to not only make ESG data collection and reporting easier, but can improve ESG performance in general.
Real-Time Data on Building Operations
CAFM software that collects big data can gather and process different kinds of data points from various operations. This can include air conditioning systems, electricity usage, water management, and so forth. Thanks to this feature it is possible to speed up decision-making, increase tenant satisfaction, and solve problems before they occur. Furthermore, machine learning and big data technology can unlock other valuable insights. With ESG reporting, a major challenge is obtaining good quality data. PropTech simplifies this by providing a cost-effective way for data collection, aggregation, and display.
5. Health-centered Solutions
Health and safety measures have become a focal point in commercial real estate management. Particularly during the COVID-19 pandemic, technological innovation can help improve safety measures for tenants and workers.
Air Quality Monitoring
Air quality is a concern for building managers. New technology has emerged to deal with different aspects, from monitoring pollution levels to air purification. All to provide health, comfort, well being and productivity of building occupants.
Real estate businesses can benefit from new technology to deal with environmental issues. Waste-water management, energy storage, carbon emission lowering, and more can improve facility management systems and lower costs. One of the ways in which the PropTech solution can be applied to reduce environmental impact is using facility and maintenance management software. In addition, it can have a huge impact on the ESG strategies of real estate companies.
Visitor management touchless systems allow visitors to complete the entire check-in process using only their mobile phone, eliminating the need to use touchscreens of reception iPad or logbooks. These solutions help improve hygiene, streamline workplace facilities, enable visitor tracking, and manage capacity. In the age of COVID, this increases everyone's safety.
Smart Cameras with Temperature Sensors
Smart camera temperature sensors are beneficial in low-light areas, have few visual limitations, and provide better accuracy. Smart tech is becoming an increasing need among Gen Z. A recent study says 62% of Gen Z renters consider smart tech more important than normal amenities.
6. Virtual and Augmented Reality
97% of property buyers search for property via the internet before physical inspection. The advent of virtual and augmented reality systems will change not only buyer experience but also computer aided facilities management systems.
Conceiving new property can be challenging. 3D modeling can create realistic architectural images to improve decision-making and provide perspective on building upgrades.
Virtual Property Tours
Commercial real estate firms can create virtual tours of their properties to improve buyer experience. Buyers who can’t physically inspect the property, like due to COVID-19 restrictions, can have full access and see everything in detail as if they were there. A recent survey says 72% of agents will continue with virtual tours post-pandemic.
Integrating CAFM and BIM (Building Information Modeling) is an ideal way to improve presentation models and reduce issues of shifting information between different teams. Some specific features of this solution can include visualizers to view 3D models of the property. Additionally, there is multiple site management, specific equipment locations, and quickly adding work orders.
Real estate technology trends are shaping the commercial real estate industry. The once slow to change sector now utilizes cutting-edge technology to improve facility management systems, maintenance, and data processing.
Velis Real Estate Tech is a leading PropTech company offering various technological solutions to automate and integrate IoT sensors, apps, and data systems for commercial and industrial real estate management.
Velis Real Estate Tech offers three products that capitalize on real estate technology trends:
- Singu FM: an innovative platform dedicated to facility and maintenance management offering among others IoT and BIM integration, automated meter readings, and cloud-based big data processing. Moreover, Singu FM has a Dilapidation Report module that for example enables to conduct of health and safety audits. Regarding mobility trends, built-in Singu Tenant App features include sharing building news and updates, checking meters data on the dashboard, creating surveys, and more - all through the mobile phone. Moreover, Singu FM allows for example technicians to use a mobile phone to conduct inspections, add work orders, mark localizations on the plan, and many more.
- Singu Guestbook: a visitor management system that uses automation, and big data reporting to streamline registration and guest services. Another trend, that Singu Guestbook follows, is the possibility of a touchless checking in through own mobile phone, which increases safety in the building.
- Singu Smart Security Desk (SSD): an automated vehicle access control system, using big data reporting processes as well as IoT and hybrid RFID-LPR technologies enabling vehicle entries and exits automation. Remote control of the barriers streamlining the vehicle flow process also fulfills health-centered trends through reducing direct contact between the security officer and the driver.
Integrating facility management software is no longer a choice but a necessity for business growth, saving costs, and improving client experiences. Contact Velis Real Estate Tech to learn how their innovative facility management technology can evolve your business.