As we enter the final weeks of 2019, it's time to look forward to 2020 and what lies ahead in the commercial real estate industry. Technology will continue to play a huge role in shaping and disrupting commercial real estate. Here are five trends predicted for the new year:
1. Expansion of Artificial Intelligence
Artificial intelligence is disrupting many industries, including commercial real estate. In 2020, you can expect more companies to release artificial intelligence-based services that can simplify commercial real estate transactions. One example is a new service that uses optical character recognition technology to scan documents and complete financial audits and reviews prior to commercial real estate transactions. Artificial intelligence is also being used to more accurately predict market trends and create forecasts. The potential for artificial intelligence's integration into XRE goes beyond these applications and may soon be used to complete other time-consuming, complex tasks.
2. Introduction of New Platforms
Due to their complexity, commercial real estate transactions can be difficult to manage, particularly for landlords and tenant representative brokers who may be juggling multiple deals. To help address these issues, new platforms are being introduced to the commercial real estate industry. Simply put, a platform is a service that makes it possible for two groups of users to interact online. Facebook is one of the most well-known platforms. Commercial real estate-focused platforms can connect prospective tenants with brokers and landlords, making it possible to chat, share files and track transactions and data in real time.
3. Greater Adoption of Virtual and Augmented Reality
Virtual reality and augmented reality have slowly been entering the commercial real estate industry in recent years, and experts predict that in 2020 these technologies will really take off. Virtual reality will give tenants the opportunity to walk through buildings and offices without ever leaving home, making it much easier for large companies to complete the leasing process when expanding into new territories. Augmented reality is currently being used to assist with construction management to make build-outs and new construction more expedient. You can expect more companies to adopt these types of technologies in 2020 and for new VR and AR applications to emerge over the course of the year.
4. New Uses for Drones
As in previous years, the use of drones will continue to be a major disruptor in commercial real estate in 2020. Drone technology continues to improve, making it possible to now use these un-manned aircraft to capture footage in more challenging locations and even indoors. Footage captured by drones is being used to not only provide prospective tenants with detailed photographs of buildings and surrounding areas but also by construction contractors and developers to monitor the progress of projects.
5. Focus on the Internet of Things
New applications for the Internet of Things and greater adoption of smart technology in office buildings is predicted for 2020. More office buildings will provide smart lighting, heating and cooling systems, security and other automated services, making it easier for tenants to control their operating costs and for property managers to respond to maintenance and repair requests.
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