Advanced digital marketplaces, mapping tools, VR, drones – we saw these technologies skyrocket in other industries years ago. True to form, real estate, specifically CRE, is lagging in adoption. Several explanations are behind this adoption rate. What’s important, is that it’s finally here. It seems we’ve reached the very edge of the tipping point. In the next few years, we will see mass adoption of new marketplaces like Crexi and Brevitas, the use and acquisitions of technology companies like Floored, and widespread use of new video technology including VR and drones.
What does this mean for the industry?
- Quicker everything
- Competition level fluctuations
Speeding things up. Remember when it used to take a few weeks, maybe months to find the right car? Or how about trying to find recommendations of a restaurant that served your favorite food? As information becomes easier to search and filter, and the quality and format of the information improves, action happens much, much faster. Listing sites and eye-capturing content will help brokers find the perfect property sooner. Tools like 3D mapping will help decision makers digest important information. Searching, finding, deciding: everything will happen in a shorter period of time.
When Google and Yelp made it possible for small businesses to claim themselves and display their product or service to the world, what happened? The ones who took advantage of the new technology saw crazy growth, while the ones who did not, struggled. Whenever an incredible, new technology is introduced, those who adopt first are rewarded. CRE will see brokers using top of the line tools succeed and stand out more easily. Eventually this will change as adoption spreads, so it’s important to move quickly.
The change of adoption in new technology within CRE isn’t extremely apparent to those outside the industry. However, we will see this change as things progress, leading to the introduction of many new players. Tech professionals and companies from other industries will attempt to expand their services into this industry. Companies with more knowledge about CRE will have an essential advantage.
We know new tech is here, and that early adopters are moving quick. It is clear this will play towards immense changes within this well-established industry. CRE will look different in 3 years; the questions remaining are how much and who will get on-board?