How Will Commercial Real Estate Innovate As We Approach 2020
Agility will be the name of the game for the commercial real estate (CRE) industry. Fluctuating client expectations, technology, and shifting business strategies all demand that commercial realtors be ready to adapt and adjust business priorities as needed.
Improving Tenant Stickiness
Part of the challenge of managing CRE is keeping tenants in the buildings. The competition is fierce and Florida CRE companies will need to be ready to pivot to keep pace with clients’ wants and needs. For example, imagine a competing company opens a new property boasting several high-tech amenities in a prime beachfront location. Commercial realtors can’t always retrofit their properties to supply all of these upgrades nor can they do much to change the view.
However, they can utilize a mix of augmented and virtual reality to help clients visualize how they can use the space and why it is a good fit for them. Augmented reality also offers potential clients the opportunity to tailor the space to their desires prior to moving into the property.
Artificial intelligence and connected devices can also provide insights on what customers expect and anticipate their desires before they step foot in the building. This allows CRE professionals to modify buildings and properties to potential tenants needs, making them an attractive option.
Keeping Up With Technology
Reactive implementation of technology is ineffective as is ad hoc services and devices. Taking a piecemeal approach to technology will yield inferior outcomes in the long run. CRE companies need to develop a strategy that spans the entire enterprise rather than a single building or a handful of buildings. Finding ways to improve the compatibility of the core IT framework with modern technology should drive any tech-based changes.
Technology should also aid in information management rather than simply adding to it. Data is useless without a way to analyze it and draw inferences. Deciding where to implement connected devices and how to utilize artificial intelligence will go a long way toward interpreting data in a meaningful way.
The CRE sector tends to place risks into silos such as finance, tenants, and portfolio risks. However, in the past, the industry showed a preference for reactive risk management. With today’s high-tech and fast-paced environment, CRE businesses in Florida need to take proactive steps to protect their investments. The experts at MMA Florida are intimately familiar with the hazards affecting the CRE scene in Florida. Contact us to learn how we can help your commercial real estate business.