What Tech Startups Need to Know About CRE

What Tech Startups Need to Know About CRE

Forbes says 90% of all startups fail. Even fewer of the surviving 10% move from startup to unicorn status. Starting a new business is tough, but we’re rooting for you. The commercial real estate industry needs the fresh ideas that make the entire industry more efficient and cost productive.

Drone Startup Financing Reaching New Heights

Drone Startup Financing Reaching New Heights

Investors are investing significant capital into companies innovating in the drone industry. According to early numbers from CB Insights, investment is heading for new heights for the sixth year.

Your Apartment Building’s Emergency Plan Needs Mobile Communication

Your Apartment Building’s Emergency Plan Needs Mobile Communication

Tenants typically prefer to be left alone, but when they want to contact a property manager, they expect easy and instant communication. Conversely, property managers want to ensure tenants are adequately informed at all times about everything from overdue rent to scheduled building maintenance.

How Did We Do? 2017 Trends Mid Year Update

How Did We Do? 2017 Trends Mid Year Update

The long overdue commercial real estate tech adoption is occurring at a rapid pace. Back in January, we make a few predictions about upcoming real estate tech industry trends.

Ready to Start Coworking? 9 Places to Book Flexible Work Space

Ready to Start Coworking? 9 Places to Book Flexible Work Space

Earlier this year, the Global Workspace Association surveyed 85 coworking spaces and found 87% expect increased occupancy in the next two years. That backs up another forecast projecting rapid growth with over 26,000 coworking spaces anticipated by 2020.

Guest Q&A: Learning From One Of The Most Successful Startups In The Real Estate Tech Sector

Guest Q&A: Learning From One Of The Most Successful Startups In The Real Estate Tech Sector

Our CEO Michael Beckerman recently caught up with Steve Wayne, Founder and CEO of ProspectNow to discuss how he has built his successful startup, lessons learned and future plans. We hope you will enjoy it.

How Artificial Intelligence Will Transform CRE

Richard Sarkis, CEO of CRE data platform Reonomy

Artificial intelligence has already redefined a number of industries, but the commercial real estate sector has yet to fully embrace the technology’s potential.

Among the most prominent manifestations of artificial intelligence, machine learning, natural language processing, and predictive analytics are already making significant contributions to industries as diverse as education, software development, healthcare, and finance. To echo author and big data expert Bernard Marr, “the AI revolution isn’t coming…it’s already here.”

According to the Harvard Business Review, there is a compelling, if simple, reason why so many diverse enterprises are embracing AI: it produces tangible results. An HBR study found that “companies in the top third of their industry in the use of data-driven decision making [much of which is facilitated by AI] were, on average, 5% more productive and 6% more profitable than their competitors.”

Reluctance to Adapt

Despite these demonstrable benefits, the commercial real estate sector has been slow to develop and adopt AI-based technologies capable of improving the way businesses buy, sell, rent, and lease properties and buildings. This can be attributed, at least in part, to apprehension among CRE professionals regarding automation-driven job loss and the impersonalization AI represents — concerns that are more or less unfounded.

Success in the CRE industry was, is, and always will be rooted in interpersonal human relationships. AI, transformative as it may be, will not negate this. Conversely, technology will actually facilitate more opportunities for relationship-building and help brokers pinpoint whom among their clients — or better yet, potential clients — is ready to move forward in the sales cycle. Make no mistake, the role of the modern CRE broker is markedly different than what it was a decade ago, but a changing job description need not require the abandonment of a personal touch.

AI presents a distinct competitive advantage for those CRE professionals willing to embrace its potential to augment their abilities. While no two sets of circumstances are the same, CRE organizations that do their due diligence in selecting the most effective AI tools for their particular business focus are well on their way to becoming market-leaders. This transformation may take a number of forms, and as such, it’s worthwhile to review those areas of CRE with the most to gain from AI integration.

Organizing Information and Transforming it into Actionable Insights

Even before the proliferation of computers, CRE was a documentation-intensive field. An effective CRE broker must collect data related to the ownership history, zoning regulations, and financial status of dozens — if not hundreds — of properties to stay competitive in an oftentimes cutthroat environment. Collecting this data is time-consuming enough on its own, but organizing it in manner conducive to easy retrieval is a burdensome task unto itself.

Once a broker manages to parlay those data points into a deal, finalizing the contract involves extensive paperwork including leases, non-disclosure agreements, partnership agreements, and supplemental financial documents. Such paperwork includes sensitive personal information and legally-binding purchase or rent obligations, yet many CRE firms still organize and store it in haphazard and insecure ways.

AI technology has the potential to clean up, refine, and reposition these CRE data processes. Not only can AI gather, organize, store, and retrieve asset data more efficiently than any human broker, it can also perpetually analyze incoming and amended documentation to ensure that everything is in order. Missing signatures and unintended legal missteps have long been unavoidable in CRE, but these risks can be easily minimized with the help of an AI data platform.

What’s more, AI technologies like predictive analytics are capable of turning vast repositories of data into actionable insights, picking up on patterns too subtle for the human eye that may indicate, for instance, when a specific neighborhood is ready to explode in popularity. Deploying AI as an organizational tool and safeguard against risk is certainly beneficial, but brokers who are able to take advantage of the technology’s forward-looking capabilities will truly revolutionize the way CRE business is conducted.

Increasing the Efficiency of Deal-making

Integrating AI into the CRE process will not challenge the centrality of human interaction as much as make it more efficient. Lead development is part and parcel of successful CRE, and while this will always entail cold-calling property owners, many AI systems are powerful enough to scan thousands upon thousands of data points drawn from public profit and loss reports and historical sales records to determine which properties are most likely to sell. In other words, AI doesn’t eliminate the need to pick up the phone, but it can ensure that every number a broker cold-calls has a high potential for success.

Relatedly, by analyzing both historic and current market conditions, AI can accurately predict precisely where a price compromise will occur. This provides brokers with an invaluable piece of information that can streamline the negotiation process and ensure that brokers appear knowledgeable during cold-call encounters. CRE expertise stems in large part from having access to and understanding as much information as possible, and nothing hurts like an opportunity lost quite as much as being laughed out of the room (or off a call) for suggesting a starting price-point an owner finds preposterous. An effective AI is built to prevent such missteps, and knowing that an initial offer is well within market standards — and having the data to back it up — lifts a heavy burden from a broker’s shoulders.

Embracing the Changes Offered by Technology

These functions barely scratch the surface of what artificial intelligence is capable of, but it’s clear that commercial real estate is rapidly headed for a digitized and automated future. So long as brokers learn to wield the tremendous power of technology instead of reject it, they have nothing to fear and everything to gain.

AI technology has the potential to clean up, refine, and reposition these CRE data processes. Not only can AI gather, organize, store, and retrieve asset data more efficiently than any human broker, it can also perpetually analyze incoming and amended documentation to ensure that everything is in order. Missing signatures and unintended legal missteps have long been unavoidable in CRE, but these risks can be easily minimized with the help of an AI data platform.

What’s more, AI technologies like predictive analytics are capable of turning vast repositories of data into actionable insights, picking up on patterns too subtle for the human eye that may indicate, for instance, when a specific neighborhood is ready to explode in popularity. Deploying AI as an organizational tool and safeguard against risk is certainly beneficial, but brokers who are able to take advantage of the technology’s forward-looking capabilities will truly revolutionize the way CRE business is conducted.

Increasing the Efficiency of Deal-making

Integrating AI into the CRE process will not challenge the centrality of human interaction as much as make it more efficient. Lead development is part and parcel of successful CRE, and while this will always entail cold-calling property owners, many AI systems are powerful enough to scan thousands upon thousands of data points drawn from public profit and loss reports and historical sales records to determine which properties are most likely to sell. In other words, AI doesn’t eliminate the need to pick up the phone, but it can ensure that every number a broker cold-calls has a high potential for success.

Relatedly, by analyzing both historic and current market conditions, AI can accurately predict precisely where a price compromise will occur. This provides brokers with an invaluable piece of information that can streamline the negotiation process and ensure that brokers appear knowledgeable during cold-call encounters. CRE expertise stems in large part from having access to and understanding as much information as possible, and nothing hurts like being laughed out of the room (or off a call) for suggesting a starting price-point an owner finds preposterous. An effective AI is built to prevent such missteps, and knowing that an initial offer is well within market standards — and having the data to back it up — lifts a heavy burden from a broker’s shoulders.

Embracing the Changes Offered by Technology

These functions barely scratch the surface of what artificial intelligence is capable of, but it’s clear that commercial real estate is rapidly headed for a digitized and automated future. So long as brokers learn to wield the tremendous power of technology instead of reject it, they have nothing to fear and everything to gain.

Got Questions About AI? Buildout Has Answers

Got Questions About AI? Buildout Has Answers

Ask any commercial real estate professional what top three tech trends will revolutionize the industry. Chances are one of the three will be artificial intelligence. If you’re using predictive analytics, chatbots, or any software with machine learning, congratulations! You’re using AI.

Buildout Secures $8 Million Investment, Looks to the Future of CRE Tech Transformation

Buildout Secures $8 Million Investment, Looks to the Future of CRE Tech Transformation

There’s a common cliché that commercial real estate is an industry behind the times, operating with outdated technology and refusing to adapt to modern advances. But one CRE tech CEO is convinced this is changing.

JLL Spark Launch to Accelerate PropTech Development

JLL Spark Launch to Accelerate PropTech Development

Commercial real estate leader JLL joins other large-scale companies starting in-house entrepreneurial arms with the launch of JLL Spark.

#CREtech Exhibitors: GeoCV

#CREtech Exhibitors: GeoCV

GeoCV enables everyone the ability to capture and share reality in volumetric 3D, using your phone. Their 3D viewer for web, mobile, and virtual reality showcases photorealistic visualizations with smooth navigation.

Travtus Analyzes Your Property’s Health

Travtus Analyzes Your Property’s Health

Tenants are the greatest source of information for a property manager. They report issues and status of your asset better than any inspection. But this information is often lost in the reactive nature of managing repairs.

What is Standing in the Way of Smart Tech Adoption?

What is Standing in the Way of Smart Tech Adoption?

Check out any recent top real estate tech trends lists, and smart technology has made the cut for quite some time now. At the CES 2017 show, the amount of artificial intelligence, IoT, and sensor tech integrated into building infrastructure and commonplace items created the impression every structure is a smart tech hotbed.

Big Data Means Big Changes for the Real Estate Industry

Big Data Means Big Changes for the Real Estate Industry

Talk about trendy: worldwide, 40% of companies use big data to inform decisions and streamline workflows. That number is sure to grow since its application maximizes work production while cutting costs.

Ripe for Disruption: How Open Architecture APIs Could Revolutionize the Real Estate Industry

Ripe for Disruption: How Open Architecture APIs  Could Revolutionize the Real Estate Industry

Open architecture application programming interfaces (commonly referred to as APIs), make many of the apps and websites we use daily possible. Twenty years ago, the airline industry took the lead in developing an API for accessing flight reservation data.

ProspectNow Launches Predictive Digital Marketing Platform

ProspectNow Launches Predictive Digital Marketing Platform

The competition is fierce amongst lenders and real estate agents to land and close customers. In the drive to generate leads, lenders and agents tend to "blanket" advertise, or spend money on marketing tactics reaching customers not ready for their services. Talk about wasting money! Stop marketing to owners who aren’t ready to refinance or sell.

Technology Keeps Shoppers Visiting Malls

Technology Keeps Shoppers Visiting Malls

Today the retail landscape looks more like a screen than a shopping mall. Online shopping is swallowing a huge bite of the retail landscape. Just look at Amazon’s dominance and Wal-mart’s push to catch up with its new online initiatives. Stories about major retailers shuttering locations pop up every week.

CompStak and Xceligent Plan to Go Big, Together

CompStak and Xceligent Plan to Go Big, Together

Two big players providing commercial real estate data announced they are joining forces to deliver more efficient and transparent market insights. The CompStak and Xceligent partnership will deliver unprecedented real-time visibility into real estate markets.

A Match Made in CyberSpace: Top Online Marketplaces

A Match Made in CyberSpace: Top Online Marketplaces

Never before has it been so easy for lenders and borrowers to find one another. Online financial marketplaces make expanding real estate portfolios easier for investors of all asset classes. Borrowers benefit from connecting with all types of lenders, from traditional bank loans to crowd funding sources, securing the right funds for their projects.

Rentalutions Raises $2M For New Features

Rentalutions Raises $2M For New Features

Online rental process platform Rentalutions aims to use its recently closed $2 million financing round to cut down on the time and headache of property management. Designed for do-it-yourself landlords, the company plans to add new features like tenant screening, maintenance request management, and payment processing with the raised capital.