Within the commercial real estate industry, innovation and technology continue to grow at a rapid pace, with an emerging ecosystem of various investors, entrepreneurs and startups gaining strength and fueling the momentum.
Forward-thinking CRE technology companies are building online products, platforms and software to help improve efficiencies, as well as address certain pain points that are known in the commercial real estate space.
As a CRE asset manager, you have no doubt noticed that the industry is changing and evolving constantly, and that industry insider conversations can provide invaluable insight into some of the biggest trends that are driving this change. In our conversations with many CRE asset managers, we keep hearing some of the same trends come up over and over. With this in mind, we’d like to share some of the top trends that CRE asset managers are focusing on in 2018.
- The tenant is now in charge.
This is probably the topic we’ve been hearing the most about. Essentially, the commercial real estate industry is shifting away from focusing solely on properties to an industry that is, instead, centered around the tenant — changing the way that asset managers are working with tenants, as well as the actual product that is being delivered.
- Amenities are a given, but what the return?
Speak to any tenant or occupier, and you’ll quickly realize that nearly everyone expects modern amenities that they can offer to their employees as perks — which, historically, hasn’t been the case and is a trend that legacy building owners are having difficulty accounting for. Instead, today you’re seeing building owners working with architects to custom design spaces complete with fitness centers, bike racks, on-site restaurants, and more. And while this is certainly a good thing for tenants, the big question asset managers are asking themselves is, “What is the ROI?” Do you really need to add a rooftop terrace just to be competitive in your market, or is it actually driving your ability to justify higher rent?
- Decision making driven by data is finally here.
In years past, asset managers have struggled with the fact that it was nearly impossible to compare their performance internally with benchmarks throughout a broader market, and then make decisions accordingly. Almost all of the market data and performance information that asset managers have had to work with were a combination of intuition and guesses — at best. Not exactly the type of information you’d like to have for informed decision making. Fortunately, this is changing, and managers are finally able to make sound, smart, and informed decisions — with data to back it up.
At RealNex, we allow owners and asset managers to operate more efficiently. Our proprietary software allows you to manage deals from inquiry through move in, effectively streamlining your business and allowing you to build long-term relationships with your tenants and key decision makers. Using our software, you can plan and track all communications and interactions, and track business trends to mitigate risk or leverage opportunities for growth. Further, you can stay in front of all lease renewals, rate and manage all vendors, and monitor active tenants in the market.