There are very few sectors or industries not being significantly impacted by technology and commercial real estate investment is no exception. Technology is helping commercial real estate investors analyze a much broader set of criteria to find the right investments for them and to minimize risk. In the end, the less money that is lost in real estate investing the more that is available to put into building new infrastructure, which is better for everyone. Here are three ways technology is helping commercial real estate investors.
Better searches
Seasoned investors spend a great deal of time just looking for the right properties to invest in. Bots powered by advanced algorithms can be constantly scouring different websites to find prime options that fit within an investor’s very specific criteria or search parameters. This allows them to literally search thousands of options and narrow them down to just a few with the most potential, which they can personally evaluate.
Faster and more comprehensive analysis
Once an investor finds a property or opportunity that shows promise, they still have to look at dozens of different statistics and figures in order to evaluate the potential ROI. Real estate investment is much more complicated than other types of investments, because buying commercial real estate is similar to buying an entire company rather than simply buying stock in it. The rewards can certainly be higher, but so are the risks. Investors also have to decide whether they want to invest with partners or on their own and how many partners they need. Investing with partners helps to decrease risk, but anything that decreases risk, also minimizes the ROI.
Smart contracts
Most people know of blockchain for its role in regulating cryptocurrencies, but it has potential for a wide range of applications. One of the biggest expenses of buying any type of real estate is in the exchange of ownership. At the moment, there are so many different parties involved that all charge fees that the cost of buying and selling real estate alone is prohibitively expensive. Smart contracts can change all that. Blockchain has the potential to adjudicate contracts between parties for a single fee. This may make commercial real estate investment easier and more lucrative than ever before.