How Owners Should Prepare for Augmented Reality

Augmented reality technology is rapidly growing. The technology can mean both opportunity and some potential problems for property owners, depending on how it is implemented. First, property managers are recommending that property owners for all commercial properties start including augmented reality provisions in lease terms. In the long run, though, augmented reality could prove to be a additional income stream.

“One thing that we are watching closely, and I think that we are one of the first firms that have it in our property management agreements is augmented reality, which I call the Pokemon Go theory,” Kevin Rude, director of real estate services at Colliers International, tells GlobeSt.com. “That is the next wave that is going to hit the Los Angeles and New York markets, first. I think that everyone needs to be prepared for that as well.”

Augmented reality is still a new concept, and right now, there are few rules. “It is the Wild West,” says Rude. “We are counseling our clients.” The early manifestations of augmented reality have come in the form of building advertisements. Because most leases are silent on the topic, tenants have had the ability to take over the exterior walls.” There may a building with augmented reality advertisements, and the owner might not even know,” says Rude. “We are talking to our ownership about controlling that space on their contracts and building platforms as well as in their leases.”