How PropTech is Transforming the Commercial Real Estate Market

By Keith Thomas

Published on September 2, 2025

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Proptech or property technology is fundamentally changing how the real estate market operates. It’s quickly replacing manual processes with digital tools to speed up transactions and reduce errors, ultimately improving experiences for everyone involved — from CRE investors to building managers to tenants.

Global investment in the real estate technology sector continues to rise, as expected. Analysts expect the proptech market to hit $72.03 billion four years from now, with much of this growth coming from AI-based property valuation tools, alongside blockchain-secured transactions, mobile-first apps, cloud-based management systems, and drone-based surveying.

In this blog, we’re breaking down commercial real estate technology trends that are expected to affect CRE in 2026 and beyond, so you can prepare to work with these new systems.

What is proptech?

Proptech is the umbrella term used to describe digital tools and platforms designed to improve how real estate is developed, managed, and transacted. It spans multiple technologies including artificial intelligence, big data, IoT, blockchain, and cloud computing. Together, these real estate technologies help speed up deals for CRE investors and help reduce costs while enhancing CRE properties for the benefit of owners and tenants.

Commercial real estate technology leads the charge

Not surprisingly, commercial property teams are among the first to adopt proptech. More than 80% of CRE developers and investors now plan to increase their commercial real estate technology budgets, according to a JLL survey, with much of that spend going toward automation and digital tenant platforms.

In offices, managers now rely on dashboards that pull live data from HVAC units, lighting grids, and elevator systems so that they can immediately act when a mechanical issue surface — way before tenants file complaints or energy costs spike.

Retail CRE is following a similar track, but instead of just monitoring systems, store owners and retail center landlords now use foot traffic heatmaps and layout testing tools to redesign how people move through their space.

Industrial properties, meanwhile, are leaning hard into automation. Inventory tracking, climate controls, and dock scheduling all run on connected systems that adapt in real time, so that if a shipment arrives early or storage temperatures drift out of range, alerts trigger without human input.

Emerging proptech to watch in commercial real estate

CRE teams are using the next wave of property technology less like a calculator and more like radar — they rely on these tools to spot problems early and adjust their strategies and operations as needed to steer clear of delays and cost overruns.

Quick look: 2026 commercial real estate technology trends

Trend How it works How it benefits CRE
Digital twins Virtual replicas of buildings with live data Spot problems early, test upgrades, extend asset life
Edge computing Data processed inside the property Instant responses, stronger data security
Tenant platforms Single hub for rent, repairs, and communication Smoother tenant experience, higher retention
Predictive maintenance Sensors track equipment health Prevent breakdowns, cut emergency costs
Market analysis tools Real-time data on pricing and demand Better decisions on leasing, upgrades, or exits
Blockchain Smart contracts and fractional ownership Faster deals, lower barriers for investors
Lease automation Digital lease management with compliance updates Less paperwork, reduced legal risk
Mixed reality AR/VR for inspections and training Remote access, lower travel costs
Smart city sync Buildings connected to city grids and systems New incentives, improved safety and resilience

 

Digital twins simulate problems before they happen

Digital twins create a live virtual replica of a commercial building — complete with data feeds from HVAC, lighting, occupancy sensors, and maintenance logs. But more than a 3D model, it updates constantly and gives you a full read on how your commercial property is performing right now.

Want to test how new windows would impact energy use or simulate an evacuation during a power outage? You don’t have to guess or run spreadsheets. The digital twin does the modeling for you. You can then use these simulations to get rid of inefficiencies before they snowball and extend the life of your assets.

Edge computing responds in real time, without the lag

Instead of sending every data point to a distant cloud server, edge computing processes it directly inside the building, so your security systems, lighting, and HVAC respond instantly to what’s happening on-site. For example, if a door opens when it shouldn’t, the lock engages and the alert goes out. The system moves as fast as the breach.

This local processing also keeps sensitive data off the internet, so you’re reducing exposure and limiting the fallout from network disruptions or security gaps.

All-in-one tenant platforms build loyalty through simplicity

The old model of scattered portals  — one for rent, one for maintenance, one for announcements — is fading fast and being replaced by new tenant platforms that roll everything into a single interface.

And because these proptech platforms also track user behavior, they can help property managers build stronger communities and longer tenancies. If a tenant logs a second noise complaint, the system flags it. If their lease is up in 60 days, it can automatically prompt a renewal offer with specific perks that the particular tenant is likely to care about.

Predictive maintenance fixes a problem before it breaks

Sensors can now track vibration, temperature, and usage across elevators, HVAC systems, and electrical panels so that when anomalies show up, the system can flag them before tenants notice a thing.

This is one of the most useful commercial real estate technology trends because it lets you avoid middle-of-the-night breakdowns and emergency repairs, which can be expensive.

 Related: Read more about how proptech can reduce costs of running a CRE property.

Smarter market analysis replaces gut decisions

New proptech tools can scan everything — historical pricing, local demand, lease trends, construction pipelines — and convert that information into projections you can use to real-time changes that affect your CRE asset’s profitability. This can ultimately help you decide when to exit or when to renovate, as well as where to reallocate capital.

Are you trying to get CRE financing? You can use commercial real estate technology to generate visual and shareable data when pitching upgrades or acquisitions.

Blockchain automates transactions and open access

More CRE investors are now using smart contracts on blockchain networks to automate property deals (including escrow releases, ownership transfers, deposit handling, etc.) without the friction of using a third party for every step. Once terms are met, the contract executes — no need to wait on paperwork or emails.

Tokenization is also lowering the entry point for smaller CRE investors because it splits properties into fractional units.

Related blog: Fintech in CRE

Lease automation replaces manual paperwork

Do your leases still live in static PDFs and outdated systems? Commercial proptech can now automate and manage the full lease lifecycle — starting from writing clauses to tracking renewal deadlines and even flagging compliance risks and generating legal documents as needed. If laws change, the system updates the lease, and if a deadline slips, you get a warning.

Mixed reality lets you inspect without flying and train staff from anywhere

Augmented and virtual reality is another one of the top commercial real estate technology trends picking up speed because it lets you walk a property without stepping foot inside it. Inspections, onboarding, repair assessments — they can now all happen remotely.

Do you run multiple CRE properties across the country, or even the world? AR/VR lets you review repairs or damage without having to buy a plane ticket.

 Smart city sync taps into bigger networks

New CRE buildings will no longer operate in isolation because they can now plug directly into smart city infrastructure such as energy grids, traffic systems, and public safety alerts. When grid demand spikes, buildings can reduce load and get rewarded for saving electricity. Is there a local emergency? Alerts route directly to building managers and tenants.

Easy ways to use proptech in CRE

All these new commercial real estate technology trends might seem overwhelming, but don’t worry — you don’t have to adapt them all right away. Here are several ideas on how to apply proptech to drive growth directly, without overhauling your entire operation at once.

  1. Expand reach with better digital marketing

Virtual tours and 3D renderings are relatively affordable and easy to implement. They can give prospects round-the-clock access to your units (even if they’re still under construction). Instead of having to rely on floor plans or staged photos, prospective tenants can explore your building’s layouts and amenities wherever they are, so they can decide if they want to visit (and you save time on tours that turn out to be dead ends).

You can also update your online listings. New platforms these days have smart filters and search tools. They even include interactive maps and school zone overlays to give prospective tenants a clearer picture of the neighborhood and reduce back-and-forth.

  1. Turn your buildings into an active system

Do you already have HVAC controls in place? That’s a good start, but it’s time to go further. Smart building technology is becoming more affordable, so consider investing in proptech that tracks air quality, lighting, equipment status, foot traffic, etc. New platforms have system interoperability that connect lighting, elevators, fire systems, and HVAC in one dashboard, so you get a 360-degree view.

It might be time to update your security tech, too. AI-driven cameras, cloud-based access controls, and mobile credentials will let your staff monitor and respond remotely if you want to tighten safety without necessarily increasing your team’s headcount.

 

  1. Automate the boring stuff

Instead of logging issues by phone or email, why not have your tenants file requests through apps that route them instantly to the right team? You can also equip your managers with proptech tools that allow them to assign vendors, approve quotes, and release payments from the same platform to make sure that everything stays updated and auditable.

Looking to equip your building with commercial real estate technology?

Partner with Private Capital Investors to explore short-term bridge and long-term permanent financing solutions that are in step with today’s proptech-driven CRE market. We’ll help you secure the capital you need for tech upgrades. Call (972)-865-6206.