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.
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