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 sought after 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world is swamped in a flood of technological innovations, commercial real estate is , by and large, still managed by out of date platforms.
These old ways are changing. There is a new wave of commercial real estate technology and companies who are now dictating the tempo and 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 to be without results. Two years ago there were over US$90m worth of investments in CRE tech companies alone.
Modern times always produce innovation and competition on all fronts and levels. The considerable inflow of capital into CRE tech followed by low interest rates dramatically increased the demand. 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. With the development of various software programs that are able to cope with the task, it has become much easier, faster and cheaper to process all that data.
It is a known fact that commercial real estate is more or less a mobile industry. Brokers and agents are in the field the vast majority of the time. 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 prompted commercial real estate tech companies to begin developing apps.
Since all this new technology is now available it has seen a massive uptake on the part of brokers and agents and has become part of a modern CRE industry almost over night.