Investors plan to commit over 14 percent of all commercial real estate capital to proptech in 2019. Proptech has come a long way since its inception nearly 20 years ago, and within the past five its evolution has catapulted us into real estate’s future.
While proptech is a newer word to most people, the proptech sector is now much more mature than people realize, some solutions are nearly as old as mainstream internet use.
Here’s what you need to know.
Proptech has become a necessity, not a luxury
In the early days of technology adoption in real estate, it was viewed as more of a cool extra, than a tool that businesses “needed” to have in order to maintain a competitive edge. That was a complete reflection of our general view towards technology 20 years ago. Technology in any front: communication, workflow, transportation, financing etc. was just a frilly add-on that most businesses touted as a way to stand out.
But times have changed. Technology isn’t something that’s optional anymore if we want to function in modern business and socializing. Today’s proptech solves problems and makes processes more streamlined. As technology has fused as a necessity in all other aspects of your lives, proptech is now essential for brokers and businesses who want to grow and compete at a high level.
The truth is out there: Technology has been tested
A lot of the reason we saw technology as an unnecessary “extra” in business was because a lot of the time it felt like it added to inefficiencies, rather than solved them. New technology at the turn of the century was in its infancy, and had a lack of awareness and purpose.
Flashforward to today, and nearly two decades later, and proptech has been relieved of much of its growing pains. It’s had time to be tried, tested and reborn again. The proptech of today actually works, and there’s less of a guessing game when it comes to delivering results.
Proptech has gone mainstream
Proptech is being implemented by every major name in real estate. Brokerages like JLL and CBRE are buying-up proptech companies for their own use. More big box retailers are establishing proptech partnerships as a way to maximize portfolios.
Proptech has also become a global phenomena. From America, to the UK to Hong Kong and Singapore, every CRE market that is on the cutting edge is seeing an influx of investment to the real estate technology. Many proptech companies are expanding overseas.
Adapt proptech now to get ahead
With growing interest in proptech and fluctuation of investment, this industry is geared to become saturated and even more competitive within the next year. While proptech is still a fresh idea to most people, the opportunity is now to implement proptech technologies and get ahead of the pack.
Mallcomm specializes in being an all-in-one solution for all types of commercial real estate developments. From providing retail tenants with real-time sales and marketing metrics, to supporting multifamily residents, and increasing engagement in office buildings, we offer it all.
As PropTech pioneers, we’ve capitalized on the role of technology in communication and engagement, click here to learn more about us!