The commercial real estate market never stops evolving. Particularly now, as technology continues to advance, big changes are happening that can’t be ignored. The commercial transaction process is being expedited, the way space is being used has shifted and even how real estate can be purchased has changed with the introduction of blockchain technology. With so much in transition, we’ve created this blog post to update you on some of the trends shaping the commercial real estate market.
Machine learning has significantly changed the face of the commercial real estate market. It enables computers to actually learn from the data they are processing instead of waiting to be programmed. Pattern recognition is allowing brokers and investors alike to determine well in advance if/when a property or specific area will become popular. It’s also credited with eliminating a lot of the human error that can come when a stack of paperwork is involved. For example, machine learning is responsible for alerting parties when required documentation is missing or unsigned. It can also now draft proposals and even submit offers, far lessening the workload for brokers and allowing them more time to secure investors and expand their outreach.
In a similar vein, commercial real estate software is getting a huge facelift as well. Previously, keeping up with clients, emails and calls was a time-consuming task for brokers. Software options such as Base, PipeDrive and Salesforce, among others, have made this exponentially easier by keeping all broker data in one place. This allows brokers to have constant access to the broader picture of what’s going on, as well as to locate the areas where they need to take action quickly. Based on the success or failure of each individual transaction, these programs can also concisely forecast revenue using the data that was collected. All of these components make for a much more organized commercial transaction.
Up until now, property tours were both a time-consuming and necessary part of the commercial real estate transaction, but virtual reality is working to change all of that. Now, instead of relying on high-quality photographs and 360 degree video, brokers are leaning into technology and making the best possible use of 3-D virtual reality tours. This amazing technology allows prospective buyers to be in the space without actually being there, even affording them the ability to experience the actual scale of the rooms and the neighborhood beyond the four walls. Although making use of VR systems is still quite costly, the demand for them is certainly on the rise and that need is only going to continue growing. Some companies are working now to create VR programs that will even enable prospective buyers to decorate rooms with virtual furniture so that they can truly try it before they buy it.
Internet of Things
Smart technology has found its way into the everyday, occupying light switches, door jambs, locks and more. This means that every movement made by a tenant becomes information that can be used to continue to track trends and heighten the way a property is managed. The IoT allows property owners and managers to remotely control the security features on their properties and also to compile and send reports that will contribute to the ease of their jobs down the line by allowing them to better understand their tenants.
The introduction of blockchain technology has made the commercial real estate transaction exponentially easier as well. It does so by removing the middleman (the bank, credit card company, etc.) and allowing the buyer and seller to directly submit their information on an encrypted block through cyberspace. Blockchain has also expanded investment opportunities to people of all walks of life and income levels by allowing landlords to sell off only portions of their property.
Lastly, the commercial market is being shaped as more and more people embrace the concept of a sharing economy. As people are becoming less concerned with home and business ownership, a new hybrid model of real estate has emerged to help facilitate this. Many businesses are opting for shared office space rather than being held responsible for long-term leases with a ton of overhead costs. Residential properties are being converted into furnished homes that businesses can rent for extended stays and many new companies are coming out of the woodwork offering office furniture on a monthly rental basis.
Searching for Commercial Real Estate in Hattiesburg or the Surrounding Areas?
If you’re ready to take a deeper dive into the commercial real estate market in the Hattiesburg area, it’s time to reach out to the team at SVN | Southgate Realty, LLC. Our team is up to date with all of the latest trends and wants to help you find the best commercial property that perfectly suits your individual or business needs. Take a look through our available properties today and reach out to get looking!