Tag: Real Estate Technology

Show Potential Buyers What’s on the Market With These Real Estate Friendly Quadcopters, Only $150 | Entrepreneur

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By recent estimates from Grand View Research, the real estate industry is expected to grow 5.2% annually between 2022 and 2030. That growth does not come without competition vying for lucrative clients and high value properties.

If you want your real estate business to distinguish itself, try taking to the sky to show off your properties. For 149.99, you can get the Ninja Dragon Phantom K Pro drone and a Free Blade X Pro quadcopter, both equipped with high-resolution cameras you can use to get a full view of the houses you have on the market.

Use drones to show potential buyers every facet of your properties.

Both of these drones are beginner-friendly with intuitive controls for moving forward, back, side to side, and ascending or descending. The Ninja Dragon even gives you the option to initiate a 360-degree roll, which could be an exciting view for a client as seen through the mobile app or VR glasses. Both drones give you a first-person view from above. Use that new angle to show off the intricate brickwork around the chimney or the delicate trim on a second-floor window.

Fly for up to 15 minutes before you need to find a charger with each of these nimble drones. That means up to half an hour of air time that you can use to wow a potential buyer at an open house. You could even let the client take it out for a spin and see the home on their own terms. If their landing is a little rough, don’t worry, The Ninja Dragon Phantom comes with two spare blades and protection covers.

Take your real estate business sky-high.

The market may be competitive, but you could see more interest from potential buyers if you can show off a property from every possible angle.

For a limited time, get the Ninja Dragon Phantom K Pro and a free Blade X Pro on sale for $149.99 (reg. $369).

Prices subject to change.

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May 21, 2023
Why the Real Estate Industry Must Start Embracing Technology | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.
The real estate industry is one of the biggest industries in the country that employs hundreds of thousands of people. However, like many older industries, there is a lot of resistance in real estate to adopting and utilizing new technologies. This anti-technology attitude not only hurts the industry’s growth potential but also negatively affects property owners and renters, who are the real estate industry’s biggest clients.

Modern technology can be applied to the real estate industry on literally every level. It directly benefits realtors, property managers, real estate developers and even investors.

Here are six reasons that illustrate why the real estate industry needs to embrace and implement technology:

Related: Real Estate Is Way Behind in Tech. Here’s Why and How to Fix It.

1. Younger generations will one day dominate the industry

Many people born in the ’90s will soon be purchasing their first home (if they haven’t already). Furthermore, many millennials and Gen Zers are now working in the real estate industry or are developing and investing in property.

Millennials and their younger counterparts have been raised with technology that has rapidly advanced over the past few decades and shows no signs of slowing down anytime soon. As such, this generation naturally gravitates toward the latest technology.

Make no mistake, millennials and Gen Zers who reach leadership and decision-making roles in the industry will be implementing technology wherever possible. The question is whether they will be the first to benefit from real estate technology or if that process can gain steam now.

2. Residents want proptech

Proptech (property technology) is quickly becoming a must-have for residential and commercial properties. Proptech improves the lives of not only residents but property managers and staff as well.

Proptech takes the form of:
- Smart home devices
- Delivery management solutions
- Keyless building entry systems
- Visitor management systems
- Motion sensor lights
- Smart thermostats
- Solar-powered building monitoring systems
- Virtual and self-guided touring platforms
In short, proptech allows residents to regain the autonomy that is often lost in shared living spaces vs. owning a private home. Proptech allows residents to live more conveniently and streamline their everyday processes.

Every proptech upgrade made to a property leads to lower vacancy rates, higher rent and increased resident satisfaction.

Related: How Proptech Is Disrupting the Real Estate Industry

3. VR is the future

While people have been saying “VR is the future” since the ’80s, it’s actually here now, thanks to popular VR brands like Oculus Rift and Meta Quest. There are also hundreds of affordable devices that link up to most smartphones and tablets.

In the real estate industry, VR technology is a major convenience when buying and selling property. It allows prospective buyers and renters to place themselves directly into a building without having to schedule time for an in-person viewing.

Furthermore, VR footage of vacant homes and units can be posted on sites like Zillow and Redfin. This ensures that only serious buyers and renters will actually schedule time for an in-person showing with realtors or property managers.

4. Modern marketing depends on technology

Good luck marketing real estate without some form of technology. For better or worse, many people in the real estate industry have used technology for the most basic thing you can do on the internet: to create a website. However, a plain website isn’t going to get much traction without an effective online marketing strategy.

For buyers and sellers, listing sites such as Zillow and Redfin are valuable tools. But they’re not the only tools in the online marketing toolbox. Social media platforms that prospects visit daily, such as Reddit, Facebook, Twitter and Instagram, are prime grounds for promoting and marketing real estate.

While popular apps such as TikTok might not be your thing in your personal life, they can absolutely help market to a wider audience, particularly millennials — who currently make up the majority of renters.

Related: How Technology Can Enable Boom In Real Estate Sector This Year

5. Real estate technology makes everything faster

Real estate technology is as fast as the speed of light — or, rather, the speed of your internet connection. Blockchain technology, for example, both secures the total assets for a property and allows them to be transferred online to new buyers. This results in less paperwork and more transparency, such as prior purchase history.

Customer relationship management (CRM) software such as Salesforce also allows real estate companies to organize vast quantities of data. Similar software is useful for investors when researching the history of a particular property as well as similar properties in order to make an informed investment. What formerly took weeks of research and data crunching can now take a matter of hours.

Time is money, and that’s never been more true in an industry that goes through wildly different economic cycles.

6. Technology has never been more user-friendly

Most real estate technology doesn’t require you to have any more technological training than is necessary to operate a smartphone. These days, it’s self-explanatory to use, features online guides or includes free training courses. Furthermore, proptech hardware has never been easier to install, thanks to wireless technologies.

While these are a few solid reasons why the real estate industry will benefit from being more open to technology, there are many more arguments to be made in favor of technological implementation. The fact is: New technology is a sign of progress and growth. Without it, we’re stuck in the past.
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Cyrus Claffey

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May 1, 2023
6 Steps To Follow When Choosing a Real Estate Agent
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Opinions expressed by Entrepreneur contributors are their own.
Due to higher home mortgage loan interest rates, many homebuyers are sitting on the sidelines, waiting to purchase a home. The high-interest rates have also reduced the homebuyer’s purchasing power making a once manageable monthly mortgage payment an unaffordable expense.

However, homes that show well, are priced well and are in a highly desirable part of town will sell very quickly with multiple offers. If not, your home may be on the market for 30-plus days before you receive an offer.

If you’re thinking of calling an agent, like me, to purchase or sell a home, here are a few ways to prepare yourself for the journey ahead; have all of the money matters taken care of. What I mean by that is to be pre-approved for a mortgage loan if you’re purchasing a home and know how much you’re going to net off the sale of your current home if you’re planning to sell it. Assuming the home is presentable, we’ll be ready to show it within a few days.

You already know buying or selling is not an overnight task, but how much time it takes depends on the layout of your home and your budget. Don’t take the chance of making a bad first impression in real estate.

Related: 7 Secrets Luxury Home Buyers Need to Know

To decide on an agent, first complete the following:

1. Get a mortgage pre-approval

To begin, research your mortgage choices before signing a contract with a real estate agent. The mortgage you can afford depends on several factors, including the length, price and interest rate of the mortgage you choose.

Getting pre-qualified for a mortgage is not the same as getting pre-approved. Both pre-qualification and pre-approval need a thorough examination of your financial situation, but only the latter requires a formal mortgage application.

Related: The Property Line: What’s With the Surge in Mortgage Rates?

2. Research the market

Your search for a new home should be limited to properties within the price range established by the mortgage for which you have been pre-approved. However, if you plan on selling simultaneously, you should research comparable homes in the neighborhood. Remember that the asking prices listed in real estate ads, whether online or in print, are all you will learn. A real estate agent can provide information on how long a home has been on the market, if there have been any price reductions and, most crucially, how much you may expect to pay at closing.

While studying the real estate market is crucial, avoiding falling in love with any particular property is essential. If you need to sell your current house before buying a new one, there’s a good possibility the property won’t still be available when you’re ready to purchase. Offers contingent on selling another property, known in the real estate market as “yes, but…” offers, have a lower likelihood of being accepted by the seller than those with a stable financial background.

Related: Single Home Purchase Error Gives Woman Entire Neighborhood

3. Remove clutter

Many of us have seen “Trading Spaces” and feel confident in our home-staging abilities. You probably already know that making a good impression on your real estate agent is crucial. If you want your real estate agent to see the full potential in your home, you should have an open house before they come over.
- Extra shoes and coats should be stored. Keeping these items in plain sight indicates a closet or storage area deficiency.
- Take off your belongings. Potential buyers want to envision themselves living in your home, and seeing photos of your family reunion can soon dash any hopes.
- Empty the fridge. The home’s appearance of order and tranquility is ruined by the accumulation of alphabet magnets, postcards, and receipts.
- Clear out the clutter. Larger homes with more open floor plans give visitors more room to move about and think creatively about how they may use the property.
Related: 5 Essential Tips for Networking in Real Estate

4. Clean

If you’re trying to sell your property, a spotless look will get you far further than you think. A neat dwelling indicates a sense of ownership and pride. The entrance, for example, should be given as much care and attention as the rest of the building. Clean up the area around your entrance, mailbox, mat and trim. While you might not give much thought to dust and insects living in your light fixtures and shades daily, prospective purchasers who do their due diligence might be put off by such slovenly maintenance.

Window cleanliness is directly proportional to the amount of natural light let in and the degree to which one can take in the scenery outside. It’s a good idea to change out the furnace filter once a month to keep the air flowing freely and to keep the air quality high in your home. Finally, make sure the restroom is spotless. The ancient rule of bathroom etiquette that states you shouldn’t touch anything other than the toilet, the bathtub and the tiles suddenly becomes extremely important. Do not stand on the toilet seat.

Related: 5 Ways to Sell Your House Fast

5. Replace, restore or resurface

Many long-term residents have come to accept the need for constant maintenance and the presence of outdated or broken fixtures. Walls, for instance, need to be patched and painted. Neutral paint colors make it easier for potential buyers to picture themselves in your home (like a blank canvas), and a fresh coat of paint on an undamaged wall shows that you take pride in maintaining the property.

Consider the home’s street charm as well. Are the weeds pulled and the grass cut? Most potential buyers will form their first impression of your home based on its outside, so give it its best face forward.

A pre-sale home inspection might be helpful if your property is older or you suspect there may be surprises that would cause potential buyers to back out of their offer. An estimate of the repairs needed will let potential purchasers know what they’re getting into.

6. Search for prospective brokers

Try not to settle for the first agent that pops up in a web search. Find an agent who is a good fit for your needs by doing some research. Referrals from recent movers are an excellent place to begin, and there are also many online resources for researching and evaluating real estate agents. Also, it’s important to find a real estate agent who has experience selling properties in your area since they will know how to set a fair price for your property.

A real estate agent with years of expertise will know how to market your home effectively and where to look for a new one. Remember that real estate brokers can take as much as 7% of your home’s sale price at closing, so choose carefully.

Related: Signs You are in a Bad Relationship With Your Real Estate Broker

In conclusion

The first things to do when selling or purchasing a home are the same as they would be for any other large purchase: research and planning. Before you call in a real estate agent, you must make your house look desirable. Keep in mind that if you don’t get an offer, your real estate agent can’t help you sell, and if your home isn’t in good shape, it won’t be in high demand.
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Chris D. Bentley

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January 23, 2023
4 Changes Every Landlord Should Consider

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Opinions expressed by Entrepreneur contributors are their own.

As we swiftly turn the corner into 2023, there are many considerations on the minds of those in the real estate industry, including landlords. The past year has been one of change, and experts predict more challenges in the general real estate market and the rental landscape. If you’ve been in the game for a while, you probably realize that what is happening right now is part of a cycle, and things will eventually even out and stabilize once again. But if you’re like me, you want to experience more short-term success as a landlord today. Here are a few suggestions on resolutions to consider to make 2023 a successful year.

Related: The 5 Types of Landlords Businesses Will Encounter

Invest in technology to advance your business and properties

As a business founder and owner, I am acutely aware of just how crucial it is to make investments to experience ongoing success. As an investment property owner, upgrading technological devices within your rental properties is a great place to begin. Whether it is upgrading kitchen appliances, installing security systems such as a Ring doorbell, upgrading in-unit laundry machines, offering fiber optic internet connection (if available) or installing AI technology that can ease the life of your tenants, current and future tenants will appreciate the investments in the property and will likely choose to stay put with these upgraded amenities.

Also consider investing in a technology platform to help you manage your rental properties. This investment can make your life and job easier as a landlord or property manager and allow you to have all documents on file electronically.

Depending on the technology platform you decide to invest in, additional benefits could include accepting online rent payments, scheduling maintenance and property inspections, marketing vacant properties with a single click and streamlining security deposit or surcharge features.

Your time is valuable — invest in a platform that will make your life and your tenants’ lives easy and headache-free. Do your research and find the best platform that fits your unique needs.

Related: 6 Tech Challenges Facing Remote Real Estate Companies

Offer tenants easily accessible information

Whether you are considering investing in technology and upgrading your rental management system, having information readily available for your tenants is a goodwill gesture. If the technology route is not for you, having a good filing system for important documents regarding each tenant is important in general. If a tenant has questions about their lease or a simple question, you will have easy access to that information.

Better yet, some systems offer tenant portals so that they can access their own information at will. Over my years as a landlord and rental property owner, I’ve found that the easier you can make things for your tenants, the more likely they will continue to rent from you. And turnover is one of the most significant expenses for rental properties, so it is worth the investment.

Related: 5 Major Deal Points to Know Before Signing a Lease

Prep for continued increases in rental and property prices

This past year taught us that the housing market could be volatile. Due to the increasing cost of rent, mortgage rates and inflated housing prices, many landlords and property managers across the country have struggled to keep properties filled and struggled to collect rent payments. As inflation increases, a plan must be implemented to avoid struggles, such as late or unpaid rent payments.

Seek advice from veterans in the industry and research ways you can improve your proactive business plan to avoid hardships to the best of your ability. Creating a plan or improving on a preexisting one can be done over time and learned and improved upon through personal experiences or others’ experiences in the industry.

Retain employees in current economic conditions

At Rentec, we’ve been fortunate to have a high employee retention rate, even after 13 years of growth. I can’t emphasize enough how important it is to retain talent, especially in the current economic climate. Make sure to create a plan to keep employees and ensure they are happy with their job for the next year. Small gestures go a long way. A simple thank you card after a long week or hard project is appreciated and valued by many.

If possible and on budget, set aside funds to treat your employees. Providing a meal or small work retreat at a local park strengthens the bond between employees and is one good way to have an environment encouraging people to work hard. Combining gestures like this with fair compensation, including competitive salaries and benefits packages, can contribute to higher retention and overall satisfaction rates. I’ve found that one of the most vital actions on this front is to create open, two-way communication channels among leadership and staff, creating an environment of collaboration and teamwork.

Related: 10 Strategies for Hiring and Retaining New Employees

While none of us can know what the coming year will bring, there are a few steps you can take to reach all your goals as a landlord or property manager or any other business owner. Investing in technology, creating efficient processes, watching market trends and focusing on employee satisfaction can help.

Remember, resolutions do not always have to be immediate; instead they can be implemented over time, on your best schedule. Even small improvements can go a long way in any business. I encourage you to begin creating a plan and consider options best suited for your business and investment properties to make the best of 2023.

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Nathan Miller

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January 2, 2023
Is Real Estate Investment Trusts a Good Career Path in 2023?
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Getting into real estate is often considered to be a lucrative career path. But you don’t have to buy and sell properties to join this industry as a professional. You can enter a real estate investment trust (REIT) company or become a REIT investor.

Keep reading for the info you need to consider to decide if real estate investment trusts are good career paths for professionals like you.

Real estate investment trusts explained

A real estate investment trust or REIT is a group of funds or securities for real estate. REIT management companies oversee real estate acquisitions, sales and diversification.

Think of a REIT similarly to a mutual or exchange-traded fund (ETF). With a mutual fund, several stocks or securities are gathered together into a group. Investors can then purchase mutual fund shares rather than individual shares in the fund itself.

Similarly, with a real estate investment trust, investors can purchase partial ownership or shares of the trust, thus gaining the financial benefits of simultaneously investing in multiple pieces of real estate or other securities.

Through REITs, investors can invest in portions of real estate projects or properties and generate profits. Most real estate investment trusts are collections of properties such as hospitals, shopping malls, apartments and other large properties rather than single-family homes, though this is only sometimes true.

Related: The Most Stable REIT to Buy for a Recession

Real estate investment trusts are often attractive to investors because they don’t require those investors to finance, purchase or manage any properties by themselves. Instead, REIT companies and their employees handle all the details.

What does a REIT company do?

A REIT company acquires real estate properties and securities for its clients. It monitors the market, sells properties when necessary and continues to grow the collected trust and portfolios under its control for the financial prosperity of its clients.

A REIT company is similar to a mutual fund manager. They take care of the day-to-day monitoring of properties of investments for their clients, plus give out dividends to those clients every month.

REITs in more detail

Only some companies that invest in real estate qualify as REITs.

For a company to be a legitimate REIT, it must:
- Invest 75% or more of its total assets in real estate and U.S. treasuries for cash.
- Derive 75% or more of its gross income from interest on mortgages, real estate sales or rent payments.
- Pay at least 90%of its taxable income as shareholder dividends each fiscal year.
- Be a taxable corporation.
- Be managed by a board of trustees or directors.
- Have at least 100 shareholders or more after the first year of operations.
- Have no more than 50% of its shares owned by five or fewer people.
Related: 3 REITs That Could Be the Backbone of Your Portfolio

Do REITs pay investors dividends?

Yes, which is part of what makes them so desirable for investors. Both residential and diversified REITs pay monthly dividends to their shareholders and investors. This monthly income comes from rent and mortgage payments from the people who own the properties in the REIT.

Most REITs have an average rate of return of about 10.5%, similar to the rental rate of return landlords can expect in their first years of operation. Unlike landlords, however, REIT investors don’t need to spend much time and money maintaining or managing properties.

Note that REIT managers or companies collect a small commission from accrued mortgage and rent payments as the cost of their services. This is what pays the workers of real estate investment trusts, their managers and other professionals.

So, should you get involved with real estate investment trusts?

That depends on your career ambitions and prospects. REIT management is a complex and even potentially risky field for many.

If you get into REIT, you’ll often need to start at the bottom and work your way to the top, so your salary may not be exceptional in the first years of your career. However, the potential rewards of sticking with this career for several years could be pretty enticing.

You should consider getting into real estate investment trusts as a career path if:
- You are already interested in investing in real estate. Joining a REIT company could be the best way to learn about this unique investment field and how best to operate within it.
- You are interested in acquiring real estate and learning more about the real estate market.
- You have strong management skills.
- You are comfortable with a certain level of risk — not for yourself, of course, but for your clients.
What will you do in a REIT company?

That depends on your exact job title and responsibilities.

For most in the REIT industry, career paths begin by obtaining a position at a REIT company’s headquarters. You may start with essential maintenance or secretarial work, but gradually learn more about how a REIT company chooses its assets, communicates with its clients, and advertises its services to acquire new clients.

Real estate investment trusts career paths

There are multiple potential career paths you can pursue in any REIT industry. Here are just a few examples.

Related: The Best Careers for Your Personality Type (Infographic)

Property manager

You might work as a property manager. Many REIT companies work with third-party property management companies. In a nutshell, property managers maintain rental properties, like apartment complexes or multiple homes throughout the same neighborhood.

If you work for a property management company, you might eventually be able to work for a REIT. Alternatively, if you work for a REIT, you might work as a property manager for that trust. In this case, the trust takes care of various rental properties, which it maintains and oversees on behalf of its clients.

Asset manager

You could also pursue a career as an asset manager. REIT asset managers decide which properties they should purchase and how much debt they need to take out in terms of loans or other financing arrangements to purchase those properties.

Asset managers also oversee all the aspects of owning and operating properties and ensure property expenses align with projections. This mid-level management job requires a lot of experience in real estate, investing and similar areas.

Development executive

Development executives are chief executives for these funds. Thus, they have a lot of sway regarding what properties the REIT purchases, its profit and debt targets, and how the fund evolves.

Development executives identify opportunities to purchase new properties for the fund’s clients to improve financial prosperity for everyone involved.

This position pays well and is an excellent stepping stone to senior management positions in other real estate investment industry companies. However, expect to acquire lots of experience in the REIT arena before qualifying for this position.

Acquisition analyst

Acquisition analysts are closer to the entry-level or middle manager position than development executives. That said, they are critical.

REIT acquisition analysts plan, implement, coordinate and identify properties that the fund they work for should acquire. For instance, they may find an attractive apartment complex that needs new investors, then recommend that the REIT company purchase it to diversify the portfolio further.

Related: 3 REITs to Buy and Hold for the Long Term

Because of this, acquisition analysts need skills and experience in the real estate investment industry. They need to know how to recognize and understand market trends, spot available properties and know what properties are worth.

It is also beneficial to have contacts in the real estate or investment industries before applying for these positions in a REIT. For instance, if you are friends with local realtors, you can get an early scoop about up-and-coming properties or new listings from your friends, allowing you to recommend properties to your REIT company or more quickly than other analysts.

Summary

Ultimately, you might enjoy working for a REIT company if you like investing, real estate, analysis and similar topics. If you’re successful in this field, you’ll also make a pretty fair salary.

Check out Entrepreneur’s other resources and guides today to learn more about real estate, investments, and related topics.
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Entrepreneur Staff

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December 28, 2022
How Proptech Is Disrupting the Real Estate Industry

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Opinions expressed by Entrepreneur contributors are their own.

Over the last two decades, the real estate industry has experienced significant changes. These changes are due to the influx of new technologies and advancements that benefit many stakeholders, including agents, brokers, developers, property managers, investors, homeowners and entrepreneurs. The name that we give collectively to the synergy between technology and real estate is proptech.

Below are the four most significant ways in which this innovative technology has disrupted the real estate industry.

Related: Property Tech Is Creating An Incredible Real Estate Opportunity for Entrepreneurs

Enhancing transparency

The lack of transparency and sometimes accountability has been a long-standing problem in the real estate market, with no easy solution. At the same time, solving this challenge is of utmost importance as real estate concerns everyone. All of us need places to live in, work at and so on.

However, the root of this problem lies in the very nature of real estate. As such a large market (currently valued at $3.69 trillion), real estate has sizable capital requirements that few can traditionally afford. In addition, although it may not look this way from the outside, the real estate space is rather limited and only accessible to a relatively small number of professionals. For the average person, real estate processes and deals have always been notoriously convoluted and obscure.

Thanks to the changes it’s been bringing to the residential and commercial real estate market, proptech has made major advancements in this regard. The accelerated access to data, widespread use of technology tools and enhanced feasibility of fractional property ownership have largely contributed to growing transparency and accountability in the industry. Real estate trends, analyses, deals and operations are now much more transparent than just a few short years ago.

Related: New Real Estate Technology: Disruptive Ideas Transforming the Industry

Providing real estate access to just about anyone

Proptech’s contribution resulted in another major disruption in real estate. By enabling data, analysis and investment access to the average person, proptech has opened the door for just about anyone to enter and participate in the industry.

With the help of tech-based tools, even those with limited knowledge and experience can take part in real estate transactions. For example, the advancement of CRM, analysis, virtual reality and deal-closing online platforms has lowered the barriers to entry for real estate agents and brokers. As a result, the number of licensed realtors in the U.S. alone increased from 1 million in 2011 to 1.56 million in 2021. This is a growth of more than 50% over the course of only ten years.

Similarly, while investing in real estate has always been a tempting idea for millions of Americans, many were left out of this profitable strategy due to a lack of sufficient financial resources, market knowledge, data access or even time. In the last decade, we have seen a surge in the number of technology tools that address each of these challenges and more. Therefore, we can expect the number of small-scale, beginner real estate investors to grow exponentially in the coming years.

Related: This Tech is Disrupting Real Estate. Don’t Miss Out

Breaking the monopoly of big players

On the flip side, another way that this innovative technology is changing the face of real estate is by putting an end to the monopoly of big players. Traditionally, real estate has been dominated by a few large corporations and moguls that control each aspect of the industry such as development, brokerage, investing, market analysis or property management. The reason is simple — very large barriers to entry that only some could cross.

As smaller players are now able to participate across the different segments of real estate, this is inevitably challenging the dominance of the traditional major stakeholders. While they might understandably feel threatened by this flipping reality, it will be beneficial for everyone if the industry becomes more accessible, transparent and democratic. The entry of new players will inevitably lead to accelerated growth within the industry, thus opening more opportunities for everyone involved.

Boosting productivity and profitability

Last but not least, proptech has forever transformed the way of doing business in real estate by raising productivity and profitability. This is arguably the most significant advantage that disruptive technology has brought to real estate professionals.

Investors, for instance, formerly needed months of research, data collection and analysis in order to find a single profitable deal. Now with the help of certain real estate tech tools based on big data and AI, they can locate good deals within a few minutes — whether they are interested in residential or commercial properties, the ownership of entire buildings or parts of properties.

Similarly, being a landlord and short-term rental property host used to resemble a full-time job between writing contracts, dealing with tenants, setting up rental rates, collecting rent, managing finances and all of the other tasks. Now, there are dozens of platforms that help automate and streamline the rental property management process.

The day-to-day work of agents, brokers, property managers, lenders and others has also been expedited and facilitated in a similar manner. The end result is that real estate professionals — as well as amateurs — can complete their duties much faster and more efficiently, all while making more profitable decisions about how to operate their businesses.

Final words

As a firm believer in the importance of technology across the board (but especially in real estate), I am confident that we are far from reaching the full potential of disruption in this industry. I expect these four proptech trends to continue developing in the coming years. , And, new disruptions will continue to emerge as so many entrepreneurs are eager to carry on with the democratization of real estate.

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Zain Jaffer

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December 21, 2022
This Tech Will Transform Commercial Real Estate in 2023
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Opinions expressed by Entrepreneur contributors are their own.
3D digital twins have started to enter the real estate market and vocabulary, slowly moving from technical tools used in the operational processes to a more people-facing role. They become commercial tools of high value that stand as a commitment to innovation, adaptability and sustainability.

In 2023 and beyond, I expect to see them evolve in how they impact and support the market. Commercial real estate segments — such as office or retail — have met great challenges over the past 2 years. Now, they are confronted with new expectations from their customers, and 3D digital twins can play a vital role in meeting them. This is why I expect these tools to evolve more and more to become a standard in real estate.

After three years of focusing on digital replicas and their potential worldwide, here are the main directions I see 3D commercial digital twins developing next year:

Related: Why Executives Need to Take Note of ‘Digital Twins’

More resources for research and development

The growth of the digital twin industry means an increased competitiveness among digital twin providers to offer the best technologies to their customers. Resources involved in research and development will grow in order to develop and integrate new AI, VR and AR-based technologies, optimize and automate processes and reduce costs.

With renderings still having better graphics than most 3D tours, this could easily be a starting point for digital twin companies. The metaverses we have right now face the same challenge and as the two (real estate and digital universes) come closer, better graphics and immersive gamification features will be a must. Real estate has to be prepared for the future and for a generation of clients (Gen Z, millennials and even Gen Alpha) for whom mastering the digital space comes naturally.

We will see digital twins more in commercial areas

If until not long ago, digital twins were complex structures representing all technicalities needed in the building process, we are moving towards an era where they get fine-tuned for the public. Heavy-data replicas that required professional knowledge get a complementary partner: web-based 3D twins, easy to access and understand by anyone.

These beautiful, branded and soon-to-be gamified replicas will play an important role not only in showcasing a space digitally in order to cut down research and negotiation times but also in divestment processes, facilitating the sale of a building. Furthermore, given the increasing number of refurbished offices (54% of new projects in 2021 in London were office refurbishments), digital twins can be put to very good use here, too — presenting and pre-leasing a future space.

Related: Into the Metaverse: How Digital Twins Can Change the Business Landscape

We’re moving towards digital universes

The enterprise metaverse as a concept isn’t something new anymore. Real estate companies might soon enough have their whole portfolio digitally replicated in a web, virtual platform. This would favor especially large developers or the ones with mixed asset classes (office, residential, retail, logistics, etc.).

These universes would present spaces and their specific features in a company’s one-stop-shop, starting from a state-of-the-art 3D digital twin.

A digital twin-based real estate universe would make sense not only for existing assets but for ones in the projecting or building process. Think about new cities being built from scratch, such as The Line or the New Administrative Capital of Egypt. Presenting these projects or any future construction works to interested stakeholders can give a clearer picture of the aimed result and facilitate investments.

Costs will be reduced as more AI will be involved

In the following year and beyond, I expect to see more advanced AI-enhanced features being used in the development of 3D digital twins, as well as more IoTs, such as high-end sensors being used in the generation of these replicas.

We’ll be taking steps towards automated generation and almost-simultaneous updates of the twin — if a physical space will change, its digital version of that should (almost) immediately update. This will translate into more automation, but less manual work, time and budget spent on alterations, and consequently, lower costs.

Related: How Disruptive Technologies Are Changing the Way People Invest in Real Estate

More features will be available for more connectivity

A 3D digital twin of an office will cease to be just a replica. It will turn into an integrated administrative tool that will allow stakeholders to make comments and notes about different features or challenges they’d like to see solved. Tenants will be able to book a meeting call or a certain desk directly from the digital twin or even join a virtual office. Tenant experience and building management solutions will be integrated as well, in order to streamline as many processes and offer the market a complex solution, with multiple easy-to-use features.

What this will lead to, eventually, is turning the 3D digital twin into a more elaborate environment than the actual physical space. This might align just perfectly with the future of work, where the office will be more of a collaborative, social space, designed to bring people together not only to work together but to connect as well.

Meeting the new generation of workers’ requirements

There are two aspects to consider regarding the future of work, and consequently, of the office:
- With digital nomad visas becoming a thing, at least among European countries, people are not necessarily giving up on having an office, but they do want more flexibility. For them, it has to be as easy as possible to explore a space online, ask for an offer, access a virtual office or book a meeting room;
- When it comes to moving to a new office, the decision within a company is not taken by real estate people anymore. Marketing, HR, sales and customer success representatives want to have a saying in where a company is relocating. This means that for them, seeing a space and its potential fit-out in 3D digital twin and not on 2D plans or renderings might make or break a deal.
Digital twins will have a real impact on ESG

Transport is responsible for approximately one-fifth of global carbon dioxide emissions. People travel for many purposes, and choosing an office or buying a home at a distance is one of them. This, together with the printed materials, are two of the main areas where digital twins can have the most powerful and visible impact. Showcasing/choosing a space digitally can reduce travel and printed advertising, offering a great, sustainable alternative.

Furthermore, in the EU alone, buildings account for 40% of all energy consumption, which means there is a lot to improve in how real estate uses and recycles energy. Digital twins can easily become part of the monitoring, test-running and managing processes, helping landlords allocate resources better and show where there’s room for improvement. Better monitoring of any type of data is key in a fast-changing environment.

To conclude, I would like to emphasize what connects all the ideas I developed above: adaptability. More than anything, the real estate industry is at a turning point where players get to decide if they go digital or stick to the old ways. Change is inevitable, and I see 3D digital twins as a central part of what new processes will mean. Although they have yet to prove their full potential, I don’t think there’s room for questioning if they make sense. While I strongly believe in the power of real-life interactions, at the same time, I think real estate can’t count solely on these anymore. The industry must try to find and use the right mix with digital environments.
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Bogdan Nicoara

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December 20, 2022