As the world grappled with the isolation imposed by the pandemic, it also opened up more opportunities for technology innovation. Those sectors of real estate that continued to hold out against technology soon realized that they couldn’t cope without adopting new technology. With customers’ increased expectations, tech-based solutions have become essential to business survival.
PropTech, at its core, offers technology to optimize real estate operations and management, including the way properties are researched, transacted, operated, and managed. Its impact has been highly significant in commercial real estate (CRE) leasing.
Until recently, CRE leasing professionals had to work with live property tours. A prospective tenant would visit a few offices before selecting one to rent. The leasing department would engage in the laborious process of negotiations, preparing LOI, agreements, etc.
Enter PropTech into Commercial Real Estate(CRE)
Manual documentation, prolonged deliberations, chasing unqualified leads are falling by the wayside, thanks to PropTech. It offers not only virtualization but also analytics to make data-driven decisions. PropTech helps reduce time-consuming tasks and is a win-win for lessors and lessees, as the future tenants also save time by pre-screening the listings and shortlisting a few. Leasing agents have more time at their disposal to focus on serious leads and convert them into paying tenants.
Furthermore, leasing specialists handle a lot of data, including information related to leads, property availability, facilities management, market data, LOIs, agreements, and contracts. Unmanaged data can cause bottlenecks and lead to inefficiency. Automation and AI/ ML-based technology can sift through the data and prevent redundancy while retaining relevant information.
CRE leasing agents can also use productivity tools such as CRM as it helps them keep track of the data, improves communication through chatbots, and enhances customer relationships. Moreover, using a single source of truth to manage all transactions related to leasing is a definite advantage.
PropTech combined with market data ensures that the listings are up-to-date and reach the market quicker. Online leasing CRM ensures that everything is in one place and tracks and monitors the data, saving time. It enables better collaboration between multiple departments, including marketing, asset management, billing, leasing agents, etc.
Benefits of PropTech for Commercial Real Estate(CRE) Leasing
PropTech offers several benefits when it is fully integrated into commercial real estate’s business processes. Leasing agents now have new tools that can save them time while increasing productivity.
Both tenants and leasing agents have access to available listings and related data in one platform. This access makes it easier to handle commercial lease negotiation and facilitate the leasing process. Cloud services, document management systems, video conferencing, etc., help streamline commercial real estate leasing processes.
Get qualified leads with virtual tours. A prospective tenant tends to visit multiple spaces before choosing the one for their team. This takes a lot of time, and leasing departments often book their calendars with tours with unqualified leads. By using virtual tours, clients learn almost everything they need to know about an office space before going to visit it online. The leasing department can focus on qualified leads, thereby making sales cycles faster.
PropTech to drive CRE leasing
Commercial real estate leasing has different components, including leads, assets, negotiations, tenants, agreements, renewals, and so forth. PropTech, with its CRM software, offers a unified solution to handle all aspects of CRE leasing. For instance,
- AR/ VR technology to enable virtual tours.
- A centralized platform of assets, leases, tenants, and deals
- A dashboard to track and monitor the leasing chain, from expiry dates to occupancy rates.
- Data analytics to analyze the users’ interaction with the technology-driven platform reveals tenants’ preferences on services, amenities, etc. The responsive analytics dashboard adds considerable value for tenants.
- The live-data dashboard enables scalability – be it a single building or a portfolio, tenant information can run into thousands. PropTech solutions can bring them all together, from the size of the property to renewal dates.
- Alerts and notifications in real-time on upcoming renewals and to close deals on the go.
- Automated processing of leasing documents with personalized offers that limit human errors
- Generate reports of tenant status, occupancy rates, leads, etc.
Multiple activities of the leasing chain can be optimized through the latest tools and technology. The real estate industry has come far by adopting technology in its operations and management, whether in residential or commercial real estate. This is why PropTech is being hailed as the next frontier as it covers every industry sector, including retail, telcom, BFS, Insurance, Industrial, Residential, and Commercial.
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