The Shrinking World of Commercial Real Estate
Technology has been shrinking the world metaphorically for ages. We are constantly inundated with new products and ideas from every corner of the globe, all of it just a simple click away. Commercial real estate is no exception to the rapid changes brought on by technology and interconnectedness.
The recent push to incorporate video, virtual reality and 3-D photography so that a prospect can see a property and gather all pertinent information without ever visiting it physically is one example of this acceleration. Programs like Zoom, FaceTime, Dropbox, high-definition photography, CAD, and Matterport make it easier for real estate experts and their clients to communicate effectively while remaining remote. This allows clients to expand into new markets with less time spent traveling; allows investors to seek opportunities that were previously out of their geographical reach and comfort zone; and allows brokers, developers, architects, and engineers to work on projects quickly and accurately from their desk or home.
What does this mean for us as real estate practitioners? Expanding our geographic reach through communication and technology gives us more product and more opportunity. The rapid expansion of e-shipping, warehousing, and logistics has also ramped up the need for industrial facilities in secondary and tertiary markets. If the current trend continues, we will increasingly see more diversity in each of our respective markets, whether by retail location, warehouse user or investor.