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The commercial real estate forecast for 2020 is indicating that the industry is heading toward integrating more technology. This technology will be geared toward creating more collaborative, connected environments and unique end-user experiences. Creating more energy-efficient properties and multiuse projects offering live/work/play space also forecast to be real estate trends.
While new technologies are being introduced and woven into many aspects of the commercial real estate industry, one place innovations are quickly evolving is in providing services to tenants.
With more innovative technology available, tenant expectations are skyrocketing. The commercial real estate industry is moving toward making the user experience a top priority.
More than 90 percent of commercial real estate executives responding to a recent global survey by consulting firm Deloitte indicated that they planned to maintain or boost spending on tenant experience-related technology over the next 18 months.
Among the ways technology is being incorporated into offices is using software that allows tenants to easily contact the landlord via voice, text, email or social media. This makes it convenient for tenants to more easily handle issues such as a maintenance request. At the same time, landlords can more easily notify tenants about building news or emergencies.
This concept goes beyond office clients to anyone using the space regularly, such as a customer shopping for clothes or a resident at a multifamily property. For example, some retailers are offering smart mirrors, which enhance the shopping experience with features such as allowing customers to see how an outfit would look in different lighting.
New technology is also allowing real estate companies to streamline operations within their own offices.
One example is online property management software. Commercial real estate professionals are turning to this technology to help streamline their workday. These secure platforms help make wore efficient by placing portfolio and asset data in one cloud-based location. This makes data more organized and easy to access. A team
Tenant privacy also is something commercial real estate professionals will be paying attention to in the coming years.
A large amount of tenant data is being used and collected in conjunction with technologies such as the Internet of Things and artificial intelligence. This includes personal information such as a tenant’s location and preferences.
Commercial real estate professionals want to lessen the risk of data breaches. Forty-five percent of commercial real estate firms responding to the Deloitte survey have developed in-house cybersecurity practices.
Real estate professionals expect the economy will begin to soften, according to a report published last month by the Urban Land Institute (ULI) and PwC. Properties. However, real estate is expected to maintain stable returns, in part because there is no oversupply, the report states. The development of live/work/play environments in suburban markets is desirable to investors.
More developers are looking to sustainable buildings, in part because the market demands it. Developers note that environmental, social and governance performance indicators are important to customers, shareholders, and communities, according to the report by ULI and PwC. These features include energy efficiency, sustainable water management, and environmentally friendly technologies.
The commercial real estate forecast indicates that real estate investment will continue to be strong. Industry professionals will cater to end-users by creating mixed-use, sustainable projects and incorporating sophisticated technology to make everyday living and working easier.