Do Commercial Real Estate Need Digital Transformation?

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The covid situation came with a huge challenge for the CRE industry. The industry that was built on the foundation of in-person relationships quickly went upside down and was forced to go online. The event alone rapidly broke all the nondigital world illusions. Thus, many CRE forms that were operating in person found a need to use the opportunity for digital transformation. Thus, the industry quickly adapted to digital transformation, so there was a great spirit of upgrading operations and leveraging emerging platforms to stay ahead of the competition.

Just think about the time before the pandemic and what the CRE firms looked like. The workers were used to the office five days a week. But now, due to digitization, the work can be done online. Thus, the workers need not leave their homes. CRE forms have now shifted more to remote work, online meetings, virtual properties, etc. The digital transformation in the industry has brought a new generation of opportunity and growth.

Was CRE behind?

As there was a huge digital transformation in the CRE, it was found that the industry was a lot further behind the digital curve. During when the time when the other industries started acing digital use in the 2000s, the CRE firms remained stocked up with the conventional ways. However, the lockdown forced grocery stores to implement the web, ordering home delivery, etc. This made the application user-friendly. Besides, the change was seen in education when schools also adopted rotating schedules and online curricula for about a full academic year.

Despite all the industries shifting, the CRE did not innovate much compared to the other industries. In most cases, the CRE professionals were forced to conduct the meetings via Zoom calls, use cloud documents, collaborate with virtual tours, FaceTime, video calls, etc.

Thus, it is evident that the industry was a lot behind the others. This resulted in a lot of trouble for those involved in adjusting to the new change.

Customers expect a digital transformation.

CRE undoubtedly has seen a slow digital transformation, but the customer’s expectations must be met. Almost all customers draw a conclusion about an organization based on how they present themselves online. This action generally takes place well before they trust a brand for services. This has greatly impacted the CRE world online. Now, given the competitive landscape of CRE, businesses or firms have taken a step toward digital transformation. Here are some examples of characteristics of the organizations that are excellent.

  • Virtual services

The use of virtual tours or experiences for commercial leasing purposes can become a great advantage for the firm. It will offer a competitive edge over the others. This allows the customers and the decision-makers to get a complete idea about the place without actually leaving their desks. Besides, property owners with 3D modeling or drone footage of the property exterior and interior can save a lot of time. They can deliver the customers with a proper tour without being physically present at the property.

  • Smart technology

Getting the data from the Internet of Things devices will help understand the tenants building user needs. This can help the property owner make simple changes that can add better value. Understanding what the tenants want and what the landlord thinks the Teenage requires must always align. Herein the data-supported practices can be extremely helpful. The property owner will be able to understand the current and prospective tenant requirements. Thus, they will be able to meet the expectations better. This will result in high-record occupancy and comfort for the tenants.

  • Digital communication

All the CRE firms are now dedicated to increasing the occupancy number. The successful use of digital communication with tenants and prospects can help supplement the goal. The firms that continue to maintain constant communication will have a superior level of customer loyalty. Some of the most important media or communication here can be email campaigns, social media, digital tenant portals, etc. It all helps keep the tenant connected with the property manager and the video technology for faster calls.

  • Cyber security

Digital transformation in CRE is slow compared to other industries. Thus, the firms must understand the need for the same and start benefiting from the long-standing cyber security technology. By implementing sophisticated and new software like cloud-based communication platforms, blockchain technology, etc., they will be able to boost the growth at which the CRE firms must be operating now. Adopting the digital transformation will be a huge step. It requires proper strategies, and thus, the forms must stay prepared to take the challenge. It will provide not just comfort to leaders but also the tenants.

  • Search engine optimization

The firms that have got better SEO plans will have the ultimate competitive edge against the other firms. The right way to approach CRE will help drive traffic to the website, increase serious leads, and also ensure the platform ranks higher on Google and other search engines. The technique can help increase brand visibility and improve the trustworthiness of the tenants in the firm.

  • Paid media and digital public relations

This form of digital transformation can be extremely helpful in building brand trust. As information can easily be found online in seconds, expanding the quality and quantity of media coverage is extremely important. The CRE firms can easily gain National visibility and public awareness through the use of the right strategy. Further stronger impressions from the targeted audience of the CRE firm can actually result in better lead generation and sales in a way no other marketing effort can.

Tenant expectation and flexible technology used

The reports for 2022 show data transaction volumes in office leasing have reached the pre-pandemic level in the first quarter of 2022. This level of demand shows a significant market share of the opportunity available to the property owners for capturing the tenants if new building features and policies are met well. Herein digital technology must be used for flexible work styles. Company culture and collaboration are the top priorities for any business leader now. During this time, the use of technology that focuses more on fulfilling the expectation will be beneficial to meet the high demand. There are two implementations that can be a major selling point for commercial properties.

  • The conference room comes with high-speed internet and up-to-date technology. It will allow the users to bring their own devices and utilize them with the cross-fiction during brainstorming sessions and meetings.
  • Huddle rooms, although a new concept, has become quite popular. They must be a fraction of the size of a conference room for small sessions, meetings, and efficient Zoom calls. The property owners must further equip the hurdle rooms with large screen displays and better conference call phones with high-definition cameras. Besides this, better communication support is important. So making use of the best audio systems and speakers is recommended.

MarTech in CRE

Technology has now become quite desirable. They can bring a new perspective to the firm. But the new offerings must be announced, and the word is to be spread for better outrage. Here the use of marketing technology will bring traffic to the firm site. It will be a great driver for the tenants to find properties easily that come with elevated technology that they can enjoy.

The marketing teams that can use CRM systems, web marketing tools, customer success software, and lead generation SEO strategies will be able to get better returns on the investment. Also, they can expect a better shift in business behaviors and workflow optimization. With this, they will be able to meet all the expectations of the tenants and can keep the property occupied.

The tipping point for digital technology: CRE firms must reposition themselves

The Covid situation has presented a great opportunity for the CRE industry to reposition itself in the market. They cannot tackle difficulties with implementing technology skills and the right trends. Thus, CRE firms must consider hiring less for traditional skills and more for upgraded digital analytics, machine learning, AI, etc. After all, they have become the backbone of the digital transformation. The CRE continues to call for more specific digital skills such as automation in the long and the professionals variable to use the skills in the right way. They can make a great contribution to the surface of the firm and increase occupancy.

No doubt, marketing will be quite a vital attraction for the tenants in 2023 and beyond. As a CRE firm, you need to understand the changes and adopt the right strategies for using digital transformation. This will ensure a better insurance system and the growth of the firm.

Conclusion

Digitization in the CRE industry is extremely important for better success and growth. However, if you are facing any difficulty or require additional funding for the same, you can consider connecting with Private Capital Investors. They can help you get the best assistance possible. Irrespective of your specific requirements, they will provide you with insights and the help you require to understand the market condition and get the financing for better growth.

Want to learn more? Get in touch with us today.

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