Seven Trending CRE Technologies in 2019

NEW YORK CITY—Technology is reshaping the commercial real estate (CRE) industry like never before, with innovations in machine learning, self-driving cars, blockchain, drones and more changing how we interact with and operate commercial buildings. 

As 2019 gets underway, here are seven trending technologies that will impact the CRE market in the coming year.

Machine Learning - The proliferation of smart meters and other internet-connected devices in commercial buildings is finally providing data about buildings that didn’t previously exist and in a way that can be leveraged. Engineering teams will be better informed than ever, turning their attention toward higher-level optimization goals instead of spending time on manually collecting data. In 2019, the CRE industry will leverage machine learning to sift through its data and unlock insights into market trends, building performance optimization, and other big-data applications. There has been a lot of talk about this concept, but we are finally starting to see some real applications surface within leading institutions.

Augmented Reality - Augmented reality has the potential to make a big impact on both the leasing and maintenance of CRE. With AR, hidden features in building operations can be presented with detailed information on how the technology will create financial savings, benefit the environment, and improve quality of life in the spaces in which people work and live. The technology also has the potential to aid HVAC technicians and other vendors in locating and fixing equipment, adding visual information to the field that could include directions or model specs.

Autonomous Vehicles - With the likes of Google and Uber competing furiously against each other to be first to market, each year we get closer to seeing self-driving cars becoming part of routine traffic on our streets. Modern city planning revolves tightly around transportation and the rise of autonomous vehicles will profoundly change the way cities operate, from pedestrian behavior, to the need for parking lots, to how curb space in front of commercial buildings is used. Over the next several years, autonomous vehicles will have a major impact on the CRE market.

Blockchain - A network designed around the concept of “distributed trust” in order to facilitate online transactions, blockchain is best known as the underpinning technology for cryptocurrencies like Bitcoin. However, once the technology matures, it will likely be a game changer for CRE. It has the potential to streamline real estate investments by making them safer and more liquid as well as increasing speed and reducing costs of transactions. This will also lower the barriers to entry in markets where there are few REITs, giving investors access to new opportunities.

Drones - Drone technology has been slow to proliferate in the CRE industry. As the technology becomes cheaper and more efficient, there will be a substantial uptick in drone use for aerial surveying of buildings and their outdoor areas, providing a more effective way for security and maintenance personnel to monitor large areas.

Localized Energy Sources - On-site energy generation allows buildings to be more sustainable and resilient by creating their own energy and reducing dependence on the grid. The increase in tax credits and rebates for renewable generation have made on-site electricity generation much more accessible to building owners and property managers. The continued push for buildings to decrease waste and CO2 emissions will further incentivize owners to invest in outfitting buildings with solar panels and other sources of renewable energy – potentially moving the industry closer to being a producer rather than a consumer.

Robotics - By replicating human actions at tremendous speed, scale and quality, all at a lower cost, robots are helping to reduce human error and increase operational efficiencies in many industries. Although the CRE industry has been slower to adapt to technology changes due to the expenses involved with changing infrastructure, robotics are expected to play a significant role in reducing construction labor shortages and creating a new class of careers that interface with them.

Although the CRE industry has a reputation for being slow to change, market pressures and new technology are advancing asset management at an impressive pace. 2019 and the years that follow will be transition years for the CRE industry as building managers and building engineers continue to invest, implement and integrate new technologies into their systems, processes and infrastructure. 

Logan Soya is the CEO and founder of Aquicore, a real estate software company whose platform analyzes and predicts key building performance in real time to streamline business operations and increase property value and operating income. The views expressed in this article are the author’s own and not those of ALM’s Real Estate Media Group.