The Benefits of PropTech for Owners in the Commercial Real Estate Industry
The owner and tenant relationship in any industry is one that can become a challenge if not handled well, especially when it comes to attracting and retaining tenants. And there’s no exception in the commercial real estate industry, as the world emerges from Covid restrictions and opens up to new ways of working and re-occupancy.
The new and evolving ways of working make the current commercial real estate market a competitive one, with the advantage in the occupants’ court, and real estate owners racing to create value and meet new demands, while competing against the comforts of working from home. Areas such as health, safety and sustainability have become key selling points, as well as technology playing a major role in how tenants prefer to communicate with owners, what they expect in their workplaces in term of automated workflows and systems, as well as tracking maintenance and work orders.
PropTech’s role in the contemporary commercial real estate industry
In fact, technology is now not just a value addition, but is expected from commercial real estate owners, and can be used to stand out from competitors when tenants look for the most attractive properties to run their businesses from. It not only makes communication easier and faster, but also helps owners to track, analyse and act on issues in a timely manner, leading to reduced costs and manpower requirements.
PropTech, the application of technology to the real estate market, can provide a variety of benefits to the commercial real estate industry and not only make it better for commercial real estate owners and tenants alike, but it can also completely transform the industry for the better.
With all these changes taking place, new ones coming about, and specific demands from tenants, how can commercial real estate owners transform their spaces and buildings to attract premium tenants who will stay long-term?
The answer lies with the many benefits that PropTech brings, and the smart solutions that have been developed with all these areas in mind.
The owner – tenant relationship
Since technology is the major factor required in commercial real estate, it also contributes immensely to how owners and tenants communicate. This doesn’t just start once the tenant occupies the space or building, but in actuality, the relationship begins when tenants go in search for a space to occupy. From searching digitally through listings, to viewing the property and its amenities via images, videos and virtual tours, PropTech provides instant and convenient access to the tenant, thus creating a great first impression of the commercial real estate owner.
Once the agreements are made and tenants move in, PropTech continues to determine how this relationship will evolve, with easy access being expected from tenants to ensure that they can get in touch with owners via digital communication such as email, SMS and digital apps, rather than phone calls, visits or letters. Even collecting rent on time is made easier and more efficient through mobile banking and automated systems that ensure that monthly rentals are delivered to owners’ accounts on time, without the hassle of manual reminders and delays.
Evolving workplace requirements
As mentioned earlier, one of the most important areas of tenant demands and expectations is health, safety and sustainability. Tenants who want a convenient and premium experience look for properties that are certified in keeping their occupants safe and healthy, as well as taking the environment into consideration with sustainability certifications and compliance to global ratings and guidelines. Examples of areas where tenants are more likely to even pay more, include:
- Central air conditioning
- Good air indoor air quality
- High-speed internet and network connectivity
- Energy efficiency of systems and equipment
- Sustainability certifications meeting green building requirements
- Digitally monitored car parks
- Digitised visitor management, and
- Enhanced security, to name a few.
Tenants seek out these enhanced technologies to improve the way they do business with their own customers, and ensure an efficient work environment for their employees at the same time.
Implementing smart technologies to transform spaces and buildings
While it may seem daunting to incorporate these types of smart technology solutions and transform buildings and spaces into smart ones, PropTech has already developed easy-to-use solutions that make everyone’s lives easier. Several companies around the world have developed solutions for all areas mentioned above and more, to automate processes in a digital environment, focused on lower energy usage and workflows that specifically target high emissions to ensure that sustainability goals are met, and waste is reduced.
Incorporating these and any additional requirements requested by tenants into spaces and buildings is no longer a drawn-out process. Customisable systems, software and integrations are now available, ensuring that anything that needs to be done can be accomplished in the most efficient manner, to optimise the operations of a business, and ensure that it is done in a sustainable way.
In short, PropTech helps both owners and tenants to save time and money. Technology is creating the disruptive change required to make processes and everyday tasks easier, keeping the commercial real estate industry competitive and ready for the future. While PropTech brings about numerous benefits that will help commercial real estate owners attract and retain premium tenants, it will also help owners operate their buildings more efficiently and save time, money and resources in all areas of their business too. This will keep owners ahead of their competition, while also reaping the benefits of those looking to invest, who now expect a high level of digital operations and the use of smart technology for all properties and managements that they do business with.
PropTech has already made strides in transforming the commercial real estate industry. It’s now up to owners to ensure that they make maximum use of the tools available to create a dynamic environment that will not only benefit all stakeholders, but provide a smart way forward for a sustainable future.
The solutions required to make this change possible in the commercial real estate industry are already out in the market, such as in the Spaceworx Composable Marketplace. To learn more about the easy-to-use and cost-effective solutions on offer, visit spaceworx.com or email sales@spaceworx.com to request more details.
