Title: Revolutionizing CRE with PropTech: An In-depth Look at the Industry's Evolution
In the bustling realm of commercial real estate, Fred Battisti thrives as the Chief Revenue Officer at First National Realty Partners. His primary responsibilities include developing and overseeing an extensive leasing strategy. Success in this sector hinges on two essential factors: nurturing strong relationships in the market and maintaining a wealth of knowledge about the market itself. This often necessitates substantial time investment in those locales.
However, technology's influence on the industry has been transformative, acting as a complement to traditional, face-to-face approaches. Even as complete reliance on tech remains an elusive goal, advancements are undeniably streamlining operations and enhancing communication. The CRE sector, once regarded as tech-averse, is now beginning to embrace these innovations enthusiastically.
This evolution is particularly evident in the way remote teams are managed. My team, despite operating across multiple locales, communicates seamlessly, enabling us to oversee, lease, manage, own, and operate over 60 centers across 26 states. This is just one example of how tech is revolutionizing retail leasing, resulting in data-driven decisions, improved tenant experiences, and operational efficiencies.
PropTech: A Game Changer for Commercial Real Estate
Property technology, also known as PropTech, is made up of digital tools and platforms that contribute to every phase of the asset life cycle. PropTech encompasses software solutions ranging from virtual and augmented reality to AI and machine learning, all geared toward improving operational efficiency and effectiveness in buying, selling, leasing, and managing properties. The popularity and capabilities of PropTech have grown exponentially in recent years, with Future Market Insights projecting a 17% growth rate in the U.S. market from 2022 to 2032, reaching an estimated $86.5 billion in value.
These technological tools can empower CRE professionals by aiding in various tasks. Our company, for instance, has benefited significantly from platforms like Resquared, Power BI, ID Plans, Placer.ai, RetailStat, and CRE 360 Partners. While this list is not exhaustive, it offers a glimpse into the wealth of options available, each with its unique functionality. The versatility of these programs allows for seamless integration and customization, tailored to specific sales and marketing needs.
The Benefits of Property Technologies
1. Enhanced Efficiency
Employing PropTech can lead to substantial time and cost savings. It enables CRE teams to engage with a wide range of potential tenants without excessive time investment in the market. Compared to physically reaching a handful of tenants per hour, these tools allow for the screening of 1,000 potential tenants throughout the same period, complete with necessary contact information and other essential details.
2. Informed Decision-Making
The adoption of technology aids CRE teams in accessing a wealth of data, ensuring informed decision-making across various markets and retail segments. It equips professionals with the necessary knowledge to make well-informed investments, minimizing risk.
3. Improved Asset Performance
PropTech plays a pivotal role in enhancing asset performance by facilitating quick turnaround times when underperforming retailers vacate their spaces. This can open opportunities for replacement with businesses that align with the property's objectives and can boost overall performance.
4. Strengthened Tenant Relations
Technology can also serve as a valuable tool in building and maintaining strong relationships with tenants. As data becomes increasingly influential, CRE professionals can leverage this information to negotiate exclusivity agreements, providing compelling rationale based on tangible evidence.
5. Accelerated Retailer Benefits
The use of technology benefits retailers by aiding in faster leasing decisions through virtual tours, minimizing time spent on site visits. Additionally, these digital tools enable retailers to select suitable locations based on comprehensive data, ensuring a good fit for both parties.
The Future of PropTech
PropTech has already transformed the way CRE professionals, like myself, work and make decisions. With PropTech companies investing in expanding their data offerings and capabilities, these technologies will only grow in importance in the future. While technology cannot replace the significance of physical leasing efforts, CRE firms would be remiss not to consider the value of data, analytics, and technology in informing decisions and optimizing asset performance. Embrace companies that are at the forefront of technological innovation and harness its potential to maintain a competitive edge in the industry.
Join Our Website Business Council: The Website Business Council is a premier growth and networking organization for business owners and leaders. Whether you qualify or not, you're welcome to explore the wealth of resources available to members.
In the context of employing PropTech tools to streamline operations and enhance communication within Fred Battisti's team at First National Realty Partners, Fred might say: "The implementation of digital platforms like Resquared and Power BI has significantly improved our efficiency, enabling us to screen a thousand potential tenants per hour, saving valuable time and resources."
As the industry continues to embrace PropTech, Fred Battisti underscores its importance, stating: "PropTech companies investing in expanding their data offerings and capabilities will only enhance the importance of these technologies in informing decisions and optimizing asset performance. CRE firms that fail to consider the value of data, analytics, and technology risk falling behind in the rapidly evolving industry."
