The CRE industry has quietly transformed from a “mom and pop” industry to an industry where owners manage complex and global portfolios. Due to this change, commercial real estate represents about 10% of institutional investment portfolios.
Even with this evolution, the tools of trade haven’t evolved much. But that is beginning to change. A wave of CRE tech companies is building new tools for the industry. In the first half of 2015 alone, over $90 million was invested in CRE technology.
Here are four areas we see reshaping the industry:
- Rising Competition on all fronts: The capital influx—low interest rates and volatility in the equity markets—has increased demand. Other areas where competition has risen include: fundraising and talent.
- Demand for Real Time Data Access: Commercial owners and brokerages need to harness real-time porfolios and market data to succeed.
- Increased Mobility: CRE is mostly a mobile industry due to the fact that leasing agents spend a lot of time in the field. Professionals are beginning to ask why there isn’t a dedicated mobile technology for the commercial real estate industry. During the last 24 months, there has been a wave of CRE mobile apps hitting the market.
- The Consumerization of Technology: The core CRE softwares were built decades ago, and it is apparent. CRE needs a new generation of technology tools.
With static spreadsheets and phone calls as the primary tools of CRE investors, these methods are breaking down the new era.
For more information visit here.
