Technology has changed how we communicate with family and friends. It has made shopping easier and more convenient. It has even changed how people invest their money. Yet, when it comes to the commercial real estate market, not much has changed. Investors still rely heavily on traditional methods for buying and selling property – but all of that is slowly starting to change.
New technology-based companies are cropping up. They are giving commercial real estate (CRE) investors that chance to access real-time data, such as neighborhood statistics, buyers and sellers, analytics, and even the asset itself. What does all this mean for the CRE market’s future, and how can you get in on the game? The following information explains, and it details how the aid of a seasoned, competent commercial real estate lawyer can help you stay on the cutting edge.
A Closer Look at Technology in the CRE Market
Though CRE investors were slow to catch on to the technology trend, they have sunk over $5 billion into CRE-based technology in the past year alone. That a tremendous increase from the $33 million investment back in 2010. The reason for the growth is clear: not only are investors gaining access to real-time data and analytics, they are also finding that technology can take them expand their portfolios in ways they had never imagined.
The market is still hyper-local, so investors often focus their time and energy into learning all they can about specific neighborhoods. Thanks to technology, many are gaining a better understanding of markets they had never previously considered – places they may not have any prior knowledge about and may not be able to visit in person – and all with far less risk.
Buyers are not the only ones benefiting from the expansion of technology in the CRE market either. With the help of technology, sellers pull in more bidders, which often means a better deal for them. In turn, they are able to increase their profits and invest more into future purchases.
Looking to the Future – Are More Positive Changes on the Horizon?
While one can only speculate as to how technology may further improve the CRE market, many experts believe that there are additional positive changes on the horizon. Specifically, they foresee an easier, faster processing of contracts, which could benefit both buyers and sellers and supercharge the already highly profitable industry.
Industry experts are also expecting to have Alexa-guided 3D tours of properties, which will be viewed through cameras placed throughout the property, which would mean buyers would no longer have to travel to gain a realistic view of what they are planning to purchase. In short, investors will spend less money and less time procuring and selling new business ventures. There will still be a need for careful consideration, especially when it comes to matters like due diligence and negotiating a contract. This is where the aid of an attorney comes in.
Contact Our Wheaton Commercial Real Estate Lawyers
Stock, Carlson, Oldfield & McGrath, LLC believes in making commercial real estate transactions easier and seamless so that our clients can focus on what is most important – growing and expanding your portfolio. Dedicated and experienced, our Wheaton commercial real estate lawyers handle al the legal aspects of your deal, including due diligence and contract negotiation. Schedule your personalized consultation by calling our offices at 630-665-2500.