How Technology Impacts Commercial Real Estate
Real estate has always been a strong way for average Americans to invest. It is an accessible niche, and if you are lucky enough to hit the upswing of real estate trends and a strong market, you can come out the other end immensely successful. But as we enter a new technological and autonomous world, has this idea that we need physical property to run a business and be successful changed? Our technology has made our lives much easier, but what are the consequences? The real estate market, especially commercial properties, has suffered from this modernity.
A desire to go shopping and visit stores is essentialin commercial real estate, which a simple idea that has been a staple of the American lifestyle…until recently. Once a favorite pastime, mall-goers these days are turning to online outlets such as Amazon, and stores across the States are shutting their doors and closing. The impact on commercial real estate has suffered the ramifications of this. According to CNBC’s recent poll, 76% of Americans turn to Amazon for their holiday shopping, in comparison to the menial, one-digit percent that outlets and chain stores can hardly boast.
There are also plenty of benefits to technology in commercial real estate, such as eliminating inefficiencies, like time requirements to close a deal. It can take up to 300 days for the average deal to be completed, so removing inefficiencies can save timean money.
Commercial real estate can also look forward to—distribution warehouses. Despite Americans turning to online retail, hotel services, and other Internet options, these sites will still need warehouses to do their shipping, receiving, and distribution. Amazon’s recent search for a new distribution center has received multiple bids from several states and cities. This will be a positive impact on commercial real estate—a million-dollar project that will even allow for tax incentives and new jobs.
Technology has given commercial real estate some positives and negative with these recent changes to the industry, but there are ebbs and flows with everything as our society changes. When technology takes things away, it will also provide opportunities, and commercial real estate certainly will have new projects to look forward to.
Ultimately, by leveraging some of the new tools to take care of the more technical and time consuming parts of commercial real estate, brokers can let their market expertise and personality shine.