While commercial real estate leaders are optimistic about the industry’s and their company's performance for 2023, according to JPMorgan's 2023 Business Leaders Outlook: Commercial Real Estate, they’re also concerned about inflation, rising interest rates and a potential recession. One potential solution: commercial real estate technology—property technology (or proptech) in particular.
Proptech includes a range of solutions that improve how real estate is developed, marketed, managed and occupied. The industry has often lagged behind technologically, but several factors have accelerated adoption in the recent years, including:
Commercial real estate has begun to view residents and occupants more like customers, as evidenced by emerging business models like real estate as a service. Property management companies, owners and operators are finding new, innovative ways to enhance user experiences while improving operational efficiency and sustainability. With the rapid pace of innovation, proptech can help streamline operations, increase energy efficiency and address occupants' current and future needs.
Digital marketing can help property owners and operators reach a wider audience, improve brand visibility and more effectively generate leads. Examples of these proptech efforts can include:
Proptech is revolutionizing how properties operate, accelerating the smart building concept. Smart buildings use advanced technologies to monitor, control and optimize their systems. For example, smart buildings can use sensors, automation systems and Internet of Things devices to collect and analyze data to make informed—often real-time—automated decisions.
Proptech solutions can also help buildings become more energy efficient—a top cost driver according to our outlook. Smart buildings can benefit owners, operators and occupants in numerous ways:
With the challenging economic outlook ahead, almost a quarter of real estate leaders plan to optimize operations, according to our survey. New software and solutions can help streamline tasks such as rent payments, security deposits, maintenance requests, vendor management and resident communications.
For property management, in particular, the current environment has exacerbated an already long-standing issue: high employee turnover rates. According to the survey, 65% of leaders said increased costs in retaining and hiring employees drive up business costs. Technology can improve efficiency, automate many routine, mundane tasks and help property managers:
By utilizing proptech, commercial real estate professionals can reap these benefits and could attract and retain more occupants and increase their properties’ value.
The right digital rent payment platform should take a holistic approach. Find out what else to look for in your rent payment solution.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.