Whenever it comes to talking about technology and its impact on whatever the domain we are discussing, there is undoubtedly going to be one conclusion: it does change every single scope of human activities. The only difference to be mentioned here is the scale of impact it has on a particular industry, as we all know that today’s technologies have become an integral part of everything a human being does. The commercial real estate industry, which is one of the most lucrative ones in the world, has been significantly boosted by technological infusion over the course of the last decade. It should be acknowledged that, namely, technology carried the commercial real estate sector through the dark times of the COVID-19 quarantine, when offices, business centers, and coworking spaces stood empty waiting for the companies to be back.

It was the technology that ensured the bright future of commercial property worldwide, and it is surely going to keep up with that course. However, it was technology, as well, the hindered the prospects of commercial real estate development to a great cause, as it has also plundered the people’s need to work from offices. So, today, we are going to speak about both positive and negative ways technology is changing the commercial real estate industry.

Easier to Find

Like in Hollywood movies, we will start by disclosing the good news, and we will keep the bad news for later. When it comes to characterizing the link between technology and commercial real estate, it should be acknowledged that today’s technologies are nothing else but a bridge between the landlords and tenants. It helps the latter keep the former informed of any alternations or additions to leased property lists. With the help of a simple code, written by any of the copious IT companies, a landlord can have all of the processes on his or her website automated, making sure that no location is left unattended, which, by the way, is of the utmost importance for tenants.

More Communication

The very process of renting any kind of commercial real estate is easier today due to the deployment of an array of communication technologies, such as embedded messengers, into the landlords’ and intermediaries’ websites. Imagine a young company owner looking for office buildings for rent, as all of a sudden, he or she finds one. Now, what exactly happens next? Right, as soon as the person verifies the office’s compatibility with the company’s requirements, they want to speak to the landlord in order to embark upon drafting up the paperwork. Nowadays, lots of websites feature an array of messaging options that allow the prospective tenant to do that in a matter of seconds.

Sophistication at Hand

One of the most important things that people tend to forget about when it comes to commercial real estate and technology is that the former helps a lot when it comes to representing the latter. Have you seen how exquisite it looks when a commercial real estate website has been created with the help of a professional UI/UX designer that knows how much of a value a proper user experience is? Sometimes, people might not even like the property itself, but the way it is represented on your website will help them make the right choice. Technology is what makes people like the rental platforms simply because they look trendy and due to the sophisticated user experience, they get whenever visiting it.

Improved Visual Effect

One of the most significant benefits brought about by technology to the commercial real estate is the availability of 3D virtual tours. Nowadays, tenants can have a look at their preferred location without even leaving their homes, which is exceptionally convenient in today’s conditions of a pandemic. A 3D virtual tour of a premise that you would like to rent seems to be something out of the sci-fi fiction, and yet, it is real. Landlords worldwide testify to the importance of embedding the 3D virtual tour option into their websites, as it lures more and more tenants to their web hosts.

Geolocation at Its Best

It should be acknowledged that today’s tenants are also interested in the infrastructure that surrounds the building where they want to rent an office, a coworking space, a retail space, etc. Company owners, CEOs, and general managers are willing to ensure that their employees are satisfied with the location of the office. Recent psychological studies have shown that employees’ productivity is subject to the influence of copious factors. For example, an employee who spends one hour in the traffic jams is quite likely to make it to their work being irritated. They will need that extra hour to calm down and actually be able to focus on work. Having Google Maps and other geolocation tools, tenants can have an accurate look at what surrounds the building and whether it is easily accessible by the roadways.

Not So Booming Trade

Regardless of how cloudless the sky could have looked like for the commercial real estate industry, the horizon looks a bit dim, as e-commerce is gradually superseding retail spaces. Telling somebody that you don’t have to go to a brick-and-mortar store to buy yourself clothes would have been a hilarious joke some twenty or even ten years ago. Nonetheless, online shopping is one of the most popular activities among millennials, and there is surely nobody to stop this thing. Instead of opening twenty physical stores, a big online store will open one with a lot of fitting rooms where folks can simply come and try on what they ordered, eventually paying only for the things they liked.

Workspace Out of Demand

Those are not only retail premises but also the workspace owners who struggle due to the detrimental impact of technology on the modern commercial real estate industry. As a matter of fact, the COVID-19 pandemic has become a forceful step that showed a lot of companies that having an office is not something they necessarily need in order to keep up with the pace of their respective industries.

However, this is a story that can be interpreted in both ways. While a lot of companies claim that their employees can work from home and that working from an office or even a coworking space is an obsolete tendency from the past, the employees themselves are actually saying different things. During the first month of the quarantine, people could not believe their luck: they did not have to embark on the tedious commute to their offices and they could work in their pajamas, unless a serious online meeting came and they had to change its upper part for a shirt.

The quarantine dragged on longer than the folks expected, and the rates of productivity started falling dramatically as the “working” from home mode has become the employees’ main enemy. Depression, constant feeling of seclusion, and the hackneyed lack of alive communication were driving even the most avid professionals crazy. While the employers keep thinking that their employees don’t need an office simply because they don’t have to pay the rent then, they are deeply mistaken. Sooner or later, they – the employers – will start feeling the consequences of the lack of workspace, as their teams will dissolve into a number of individuals, working with no motivation and passion.

The Time Has Come

Whenever it comes to reading articles that talk about the impact of technology on whatever the author is eager to talk about, there is a need to understand one thing. The impact of technology is imminent, and there is no way to prevent it. While being one of the most progressive and massive industries in the world, the commercial real estate niche must embrace the change as rejecting and resisting it is not only impossible but also inconceivable. There is a lot of ways that technology can be used to refine the real estate market. The only thing that is left to do is to look up for the ways it can so for every single commercial real estate company, as every business nowadays finds itself in personalized financial and business conditions.

Conclusion

There is no way to run from the fact that technology has changed the way people live, and the commercial real estate industry has not become an exception out of the general rule. Technological footprint on the way the cooperation between the landlords and tenants is shaped can be neither measured nor valued. It is a bilateral kind of impact that technology has on the marker, as it simultaneously brings an upswing to the efficiency of communication between landlords and tenants and brings down the number of those willing to rent commercial real estate. Yet, it should be rather concluded that technology has a positive impact on the industry, as it fosters the image of commercial spaces, helping people understand that one way or another, there comes a day when even the smallest company needs its home.