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The Impact of Proptech on Commercial Real Estate

The real estate industry has been known to be traditional and slow to adopt new technologies. However, the emergence of proptech has disrupted the industry and driven significant changes in the commercial real estate sector. Proptech, which combines real estate and technology, has grown rapidly, with the market currently estimated to be worth $18.2 billion, and expected to reach $86.5 billion by 2032. This article explores the impact of proptech on commercial real estate, with a focus on companies like Pepro Money.

The Automation Revolution

One of the most significant trends in proptech is the automation of real estate processes through CRM and project management software platforms. This automation has led to enhanced efficiency across various sectors of the industry, including agents, brokers, investors, and property managers. For instance, agents can use automation tools to perform ongoing tasks such as communication, marketing, property valuation, lead nurturing, and deal closing faster. This leaves them with more time and energy to focus on crucial aspects of their business, such as growing their brand, developing a lead generation strategy, and networking.

Similarly, real estate investors can use automation tools to find and analyze deals, buy and sell properties, and manage their rentals more efficiently. The advancement of automation through proptech has been a win-win situation for everyone, and we recommend that new and experienced real estate professionals adopt tools relevant to their niche as soon as possible.

The Rise of Virtual Reality

Virtual reality (VR) has taken the real estate industry by storm, causing major changes in the way business is conducted. This trend has been accelerated by the pandemic and has touched upon the businesses of many different professionals. For instance, virtual property showings, 3-D tours, home staging, and virtual guides have allowed agents, landlords, and short-term rental hosts to optimize their marketing and lead generation efforts.

Architectural visualization has also made it easier than ever before for developers to sell residential and commercial properties that are still under construction. Furthermore, virtual real estate has created a whole new universe that has emerged as its own investment strategy. While the recent focus has been on investors buying virtual land parcels and properties in the metaverse, we can expect other real estate professionals like agents and property managers to find their own place in this new world.

The Power of Big Data and AI

The adoption of artificial intelligence (AI) and big data is another significant trend in proptech. There are numerous proptech companies whose mission is to use these tools to collect and analyze previously unimaginable amounts of data within seconds. A particular area worth mentioning is property investments, where technological advancements have allowed real estate investors to analyze the investment potential of entire markets and specific properties within minutes.

This has contributed to the democratization and transparency of the real estate industry, allowing new, small-scale investors to access deals as more experienced investors were already familiar with the market. We recommend that real estate investors do their research when considering using proptech tools to find the right match and make faster, more profitable investment decisions.

Fractional Investing

Fractional ownership of properties is another major trend in real estate driven by proptech. This trend is particularly important as it is one of the driving forces behind the democratization of real estate and opening it to virtually everyone. We believe that access to real estate assets should be less limited than it has historically been, and that everyone should be able to invest in shares of real estate properties with as little as $50.

Companies like Pepro Money have made this possible by allowing individuals to invest in commercial real estate properties without having to purchase the entire property. This allows investors to purchase a share of the property and enjoy the benefits of being a landlord, such as rental income, reduced rates, and usage rights.

The Future of Proptech

Proptech has been through a wild ride over the last decade, and we expect the coming years to be no less exciting. The impact of proptech on commercial real estate is undeniable, and we believe that it will continue to drive significant changes in the industry. Companies like Pepro Money are at the forefront of this revolution, making it possible for everyone to invest in commercial real estate.

As the industry evolves, we recommend that real estate professionals stay up-to-date with the latest proptech trends and adopt tools relevant to their niche as soon as possible. This will allow them to stay ahead of the competition and continue expanding their business, even in tough markets like the one we have witnessed since the outbreak of the Covid-19 pandemic.

Conclusion

In conclusion, proptech has had a significant impact on the commercial real estate sector, with trends like automation, VR, big data and AI, and fractional investing driving significant changes in the industry. Companies like Pepro Money have made it possible for everyone to invest in commercial real estate, democratizing the industry and opening it to virtually everyone. We recommend that real estate professionals stay up-to-date with the latest proptech trends and adopt tools relevant to their niche as soon as possible to stay ahead of the competition.

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Ruchika Bhalla

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Ruchika Bhalla
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