Opportunities in Real Estate Technology
Brian Ferdinand is a New York-based financial consultant and entrepreneur who has over 15 years of experience in advanced trading methodologies and technologies. Brian is the COO of Vacation Rentals, LLC.
In the last two decades, we have certainly had numerous breakthrough technologies that have changed the way we work, live, and socialize. But one field that seems to have had a dearth in innovations is real estate. While real estate startups like Zillow and StreetEasy have flexed their technological prowess to change the residential real estate vertical for the better, the industry still has a lot of catching up to do in terms of improving or eliminating inefficiencies, and incorporating analytics and big data, to name a few.
Moving forward, the real estate industry holds tremendous opportunities for entrepreneurs and technology companies willing to disrupt the status quo. If one would crunch the numbers, he or she will find trillions of reasons to do so—all $40 trillion, in fact. According to the Federal Reserve, real estate assets in the country are worth some $40 trillion, and few are racing to get their hands on a slice of the real estate pie.
For these entrepreneurs and technology companies, the areas of opportunity in real estate they can explore are in, but not limited to, the following:
Property Management – Whether for residential or commercial properties, advances in technology for property management should aid landlords and property managers in overseeing properties. There are also tools being developed for virtual viewing, budgeting and revenue management, as well as tenant screening and background checks. All in all, innovations in property management should make the back and forth between landlords and tenants faster and easier.
Research and Analytics – As data becomes more available and accessible in real time, landlords and real estate developers will have gained greater insights on trends while reducing risks. Gone are the days when networking would yield real estate agents quality leads. Now, big data can handle all that, and even enable real estate agents to conduct online marketing at a fraction of the cost.
Brokerage and Listing Services – From residential listing services will arise a commercial counterpart to serve office spaces, malls, and retail establishments, among others. More and more real estate players are seen to flock to these new marketplaces which, in effect, will reduce the visibility of real estate agents.
Mobile Apps – In general, real estate businesses and startups will require a mobile component if they truly want to be game changers. As real estate professionals are always on the go visiting properties, meeting clients, and what not, the unavailability of these real estate tools and software on their mobile phones would likely defeat the purpose of innovation.
Real Estate Lending – According to a report by Jones Lang LaSalle, commercial real estate lending by 2030 will have breached the $1 trillion mark. Mortgage technology is seen to open up communication lines, hasten processing, and improve regulatory compliance among real estate players.
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