Small and medium-sized businesses are the backbone of a thriving economy, and their importance cannot be overstated. Firms with 1 to 499 employees make up approximately 47.5% of the private sector workforce and are vital to the fabric of the local community. However, despite the industry they are part of, they have been severely affected by the pandemic.

One of these industries is commercial real estate. Small real estate dealers, property owners who were heavily dependent on property visits by customers, and personal contacts for business deals suddenly had to change their business model and offer. While this could mean immediate investments and changes in years of traditional work models, on the other hand it has brought about a rapid digital transformation that was not possible otherwise, and fueled the rise of PropTech – or real estate technology -.

Various technologies such as virtual reality for construction site visits, robotics for cleaning services, digitization and automation of processes through software based on artificial intelligence are now shaping the PropTech industry and will continue to do so in the long term

Online listing of real estate

Companies that followed a traditional stationary model up to the complete sale of real estate have shifted their offerings to the digital world. This is one of the largest and most common digital disruptions that is prevalent by real estate leasing and sales companies. Residential and commercial properties are displayed on websites with photos and videos. The services are further refined with filters such as location, price range and traffic-oriented development.

3D scanning and virtual reality for real-time room visualization

As social distancing has now become the norm to reduce physical transmission, PropTech companies are increasingly switching to 3D scanning the home and the surrounding area to ensure that personal touch. To make the big investment decision, clients prefer to examine the site first hand before completing it. Therefore, virtual reality is used to provide a lifelike visualization of the property. In addition, the CRE firms can make custom changes to the environment based on customer preferences.

Automate robotic processes

With COVID, safety and disinfection were key to containing the spread of the virus in the area. However, manual cleaning and disinfection can leave room for negligence. Disinfection is becoming increasingly important in commercial areas that offer rental space to several tenants. This is where the automatic robot process is gaining in importance. One such example is in China, where robots are used to clean the area around the building. The start-up company Gaussian has already launched cleaning robots and recently received funding to expand its operations

IOT applications and biometrics

For remote monitoring of buildings and properties (under construction), companies use IOT applications such as sensors (water, utilities and the environment). In addition, reliance on biometrics, which uses facial and speech recognition technology, is used in access systems to reduce human touch. Data captured by both sensors and biometric data sends data stored in the cloud remotely to property owners via their monitoring dashboards. This has been found to be effective as it reduces maintenance costs and in the event of an unprecedented situation such as a fire, it triggers timely alarms.

Software and platforms for the digitization of processes

The need to reduce the number of on-site staff has shifted the focus to the introduction of software and platforms that can help automate routine tasks. To reduce human intervention and remote work, building occupancy management software, accounting management software, platform for monitoring services through IOT sensors, and platforms for providing online unwriting services, closing deals, and naming rights are shaping the industry. Most of this software is now supported by cloud services, which reduces the risk of losing key data.

Digital twin and modular structure

The construction of buildings has also been severely impacted due to a pandemic that is currently suspended on most projects. To solve this problem, replicas of the buildings are being made using digital twin technology to speed up the design phase and obtain permits. The design approved with the digital twin is then developed in prefabricated construction methods, also known as modular construction. This means that the actual construction of the segments takes place with less work outside the construction site. These segments are then placed in actual locations to reduce human intervention. Technology and construction innovation combined have benefited commercial property construction companies by helping them maintain construction momentum

Keep going

For small businesses that are heavily dependent on traditional business models, digital transformation will continue to be the game changer. While these high-end innovations could prove expensive because they require huge investments, adequate funding can be raised through financial technology companies that offer loans at lower interest rates. In addition, several startups with an increasing focus on PropTech are offering new innovations that marginalize demand and costs and promote greater acceptance.

source https://seapointrealtors.com/2021/08/09/how-digital-transformation-is-shaping-small-commercial-real-estate-companies-and-proptech-startups/

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