In the last 30 years, the commercial real estate industry has gone through a lot of changes and transformations. The industry of today has become an institutional class of assets where the owners manage global and relatively complex portfolios. People like institutional investors were barely interested in real estate. With the rise of global commercial real estate investors and new investment structures on the markets all over the world, real estate is now the most wanted investment in the market.
There is an issue with this though. The trading tools are not up to this challenge. Even though the whole world is wrapped in numerous technology innovations like big and mobility data or cloud, commercial real estate is still managed out of old technology platforms.
These old ways are changing. There is a new wave of commercial real estate technology and companies who are now dictating the tempo of the trade and the evolution of new tools of the trade. Modern CRE tech companies are embracing various new software and domain expertise to build those new tools and modernize the industry. And this is not going without any results, two years ago, there were over 90 million dollars of investments in CRE tech companies alone.
New times are always bringing the rising level of competition on all fronts and levels. The considerable inflow of capital followed by low interest rates made the demand dramatically increased. This led to the reach of an epic level of prices when it comes to commercial properties. That is why the competition is so fierce today.
When the competition is high, the demand rises too. The expectations around analytics and real time data access have gone through a fundamental shift. Commercial real estate has always been driven by data but, all that data took an immense amount of time to analyze it. With the development of various software programs who could cope with the task, it became much easier to process all that data.
It is a known fact that commercial real estate is more or less a mobile industry. Agents are almost all time in the field. That is why there is a need for increased mobility. One question was put before all the professionals, why there is no mobile technology dedicated to the CRE industry. It was this question that changed the way of operations for commercial real estate tech companies.
Since all this new technology is now just waiting to be taken, it became a part of a modern CRE industry over the night. Now, the whole industry depends on it. The moderations and alterations still take place even now.