Tech Transformations in Commercial Real Estate Brokerages
The landscape of commercial real estate has undergone a remarkable shift, driven by technological advancements, particularly in investment sales. Here are five ways brokerages are leveraging technology:
Traditionally, underwriting involved intricate calculations, but technology has ushered in a new era. Platforms like RedIQ, Archer, and Clik.ai have gained popularity, automating up to 95% of the work. Artificial Intelligence (AI) has further evolved underwriting, handling initial assessments, financial data extraction, and even pulling comparable properties.
Customer relationship management systems (CRMs) like Salesforce, HubSpot, and Apto have replaced manual spreadsheet tracking. These CRMs efficiently manage relationships, track interactions, and provide transaction histories, enabling personalized communication with clients.
With data accessibility at an all-time high, third-party providers like CoStar, Trepp, and Yardi Matrix offer comprehensive commercial real estate analytics. This data, when used effectively, enhances underwriting and supports AI-driven analysis. CRMs also aid in tracking internal data points related to underwriting and sales.
Revolutionizing Offering Packages
Property marketing has shifted to brokerage websites, often requiring interested buyers to request access. Third-party marketing websites, along with tools like Buildout and BetterPitch, are changing how offering packages are created, streamlining the process and improving visibility.
Social Media Engagement
Despite being a late adopter, commercial real estate has embraced social media for property marketing. Platforms like Instagram, Facebook, Twitter (now X), and LinkedIn are becoming crucial for reaching a wider audience and generating buyer traffic.
For those considering embracing these technologies, thorough testing with real-world data during trial periods is crucial. While the initial transition may pose challenges, adopting these advancements proves to be a time-saving strategy, providing a competitive edge and contributing to the technological evolution of CRE brokerages. Early adopters stand to gain a head start in this transformative journey.