In the past few years, we have seen a massive transition in the way people work and use technology for work. It has also led to an increased interest in commercial real estate and it does not come as a surprise that the idea of using technology to enhance the value of commercial real estate investing is attractive and hot today.
Every type of investor has a different perspective regarding their position and portfolio when it comes to CRE investments. It means that some will invest in their current assets and increase value while others will sell, in turn, creating an opportunity for investors to get in and build value through investment in new technology. Here we share some ways that investors are taking advantage of these opportunities in PropTech and CRE technology.
Can Technology Increase the Value of Commercial Real Estate?
The obvious answer to this very common question is yes, technology can increase the value of commercial real estate. But if we go just one step further, the question will become how much can it be increased.
It depends a lot on the property, the cost of upgrades, and what the integration of technology returns objectively. However, the truth is that the implementation of any of the CRE technologies mentioned in this article will certainly show a positive return on the CRE assets.
CRE Investment Decision Making Platforms
In the absence of technology, it could become difficult to draw clear and actionable insights from the numbers. This is why CRE technology helps unlock valuable data which can lead to better and faster decisions that help generate high returns.
Solar Power Integration into CRE Properties
Solar power integration allows commercial real estate property owners, investors, and firms a chance to increase their cash flow by reducing the utility cost as well as increasing rents and common area maintenance reimbursements. It could lead to deeper connections with the tenants and their client basis which helps with lease extensions.
Automating CRE Systems to Reduce Labor Costs
With the use of automation in commercial real estate, it is possible to control different systems including lighting, heating and cooling, gates, security, parking garages, and more. Many new assets and multifamily properties incorporate automation into their spaces as a part of the initial plan and attract new tenants. The buildings that offer CRE technology demand more interest and a higher rate.
CRE Infrastructure Updates for Modern Needs
To remain on top of a business, it is important to consider CRE infrastructure updates that meet modern needs. Top priorities for those investing in this area include higher internet speed and connectivity, e-commerce considerations including warehouse, shipping, or 3PL integration, and hybrid work accommodations which include technology like big screens, flexible seating, and good audio visual equipment. Upgrading the property will lead to an increase in the property value.
Advanced CRE Property Management Software
Through the CRE property management software, you will be able to better understand the whole portfolio with a single system in place. It will give access to real estate data while supporting multiple locations swiftly and easily. The software can also serve as a hub for integrated systems, tenant management, finance, and platforms for other Prop Tech solutions.
Listed here are a few of the more popular CRE Management Software Solutions
CoStar Manager ( https://costarmanager.com/ )
Appfolio ( https://www.appfolio.com/ )
Buildium ( https://www.buildium.com/ )
Whether you are an entrepreneur, investor, or deal maker, it is important to understand the significance and use of new CRE technology when it comes to increasing the value of your commercial real estate investments.
We would love to discuss the different ways you can increase the value of your CRE investment. Contact us today.
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