Frank Farricker Explores the Changes Technology Has Prompted in the Commercial Real Estate Industry

Technology applications in the field of commercial real estate have come a long way over the past decade. Online listings and 3-D virtual walkthroughs are just a few examples of the technological innovations which have made their mark in commercial real estate.

Frank Farricker, a real estate executive from Greenwich, Connecticut, shares many of the ways in which technology is changing the landscape of the commercial real estate industry and how agents can take advantage of these innovations for themselves.

Artificial Intelligence

Artificial intelligence and machine learning enable commercial real estate professionals to take advantage of enhanced computing power. They are able to analyze their properties and their customer data in order to gain valuable insights. It can also help with sales and marketing by helping to personalize the messages that each prospective buyer receives from the real estate firm. Additionally, it can analyze sale records to compile recommendations for buying and selling.

AI-based solutions are able to help real estate agents manage office and industrial space more efficiently. Data from the Internet of Things (IoT) devices and WiFi sensors to allow real estate professionals to deliver insights about proper occupancy levels and space utilization.

5G Communications

The 5G rollout has been slow across the country, but it has an amazing potential to help real estate companies do their jobs. 5G connectivity will help real estate companies communicate and send files almost instantly, increasing the bandwidth of their mobile devices and providing easy access to information. Property owners will also be able to monetize their buildings in new ways thanks to the installation of new 5G towers.

Changes in Closing and Showing Processes

The COVID-19 pandemic has had major effects on the commercial real estate agency. Today, mobile technologies are enabling agents and tenants to perform the tasks associated with closing remotely. This cuts down on delays related to restrictions and can be much more convenient than traveling to remote locations.

Reduction in Staffing Costs

Technology saves both money and time where commercial real estate professionals are concerned. Using electronic means of marketing, sales, and other tasks makes it possible to use fewer staff members to do the same amount of work.

Screening Tenants

It is much easier to screen tenants online using access to their business information and background check websites. Where screening tenants used to involve a great deal of legwork, today it is as simple as a click of the mouse. This represents another significant source of cost savings for commercial real estate professionals.

Social Media

Frank Farricker notes that social media has become a huge factor in commercial real estate. While business-to-business sales and leases are less common on social media than residential sales, commercial real estate is becoming more intertwined with platforms like Facebook and LinkedIn.

Social media is often used to browse product images and information, and it stands to reason that many people who are looking for commercial real estate will want to use the platform as well.

Greater Digital Visibility

It is much easier to promote properties online. Commercial real estate professionals can find willing buyers for their offerings because it is easier to search for what they want. For buyers, it is easier to narrow down the list of properties that they want to see in person. This saves time and effort for both the agents and the buyers.

Work-from-Home Options

Many real estate professionals are now working from home at least part-time. This allows them more flexibility in their daily lives where work-life balance is concerned. Many real estate agencies are continuing to allow their employees to work at home or in hybrid situations in order to accommodate their personal lives. Technology has facilitated this change in the industry.

How to Adopt New Technology

According to Frank Farricker, the first step that commercial real estate professionals should take is to develop a strategy for technology adoption. This strategy should lay out the areas where the company could improve its operations and the projected areas where the technology may be able to help.

For example, a company that is having trouble attracting new leads may be interested in doing more promotions through multiple listing sites online and through social media.

Second, companies should create a path to technology adoption. They may need to fight outdated notions of what types of technology are useful in real estate. For example, some older agents may be reluctant to use AI systems for fear that they will be too complex or difficult to use.

Finally, real estate companies need to make a plan for how to acquire and adopt new ideas, software, and equipment. Turnkey software solutions are available for real estate companies, but some companies choose to create their own systems.

The Continuing Effect of Technology on Commercial Real Estate

Technology will continue to have exponentially increasing effects on the field of commercial real estate. Professionals, like Frank Farricker from Greenwich, Connecticut, look forward to introducing their clients and colleagues to the newest technologies helping revitalize their industry.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes