The viewer experience is a crucial part of marketing in Real Estate. With Real Estate technology on the rise, companies are beginning to offer virtual property tours in order to expedite the sales process. Whether a property is under development or a significant distance away, VR saves time and money by bringing the property vision directly to the client. This allows agents to expand their business beyond local buyers and rely less on the buyer’s imagination by making it a customized reality. With modern VR, agents can guide clients in a lifelike walkthrough tour. Victor Pena, a real estate professional with Beck Partners, sheds some light on how VR is utilized economically in CRE.
Future of VR (Virtual Reality) in Commercial Real Estate
It’s no secret how VR has changed the game for consumers. However, it’s more of a mystery as to how Commercial Real Estate business owners can implement VR in their everyday sales initiative. VR immerses people in a virtual interactive model of a property within the comfort of their homes. Victor explained, “VR developers are now able to look at the blueprints of an image without having to build it. You can make detailed images and add touch-ups.” This is a powerful tool to help investors and tenants make firmer decisions on the properties they build, buy or rent.
Is the Value of VR Enough to Balance Its Cost?
VR is an expensive technology. The average price of creating a VR app ranges from $10,000 to $60,000. However, to develop an app along with headset usage, employers can expect to spend upwards of $100,000. A simple headset sensor costs anywhere between $500 to $1000 with most real estate owners spending an average of $500 to $2000 in the past year. This begs the question: Does VR add enough value to Commercial Real Estate to balance the expense of the equipment?
Though the upfront cost of VR equipment will be expensive, the long-term value added to businesses will be insurmountable. “With the help of VR,” Victor specified, “Your client will no longer need to spend money on something they’ve not seen.” Through building powerful virtual models, you eliminate the risk of your client ultimately realizing they don’t want the property after finances were spent. This enables greater savings for real estate agents, limiting building and travel costs.
However, in addition to the cost issues, there are other hurdles to be crossed before this technology is accepted by both consumers and real estate owners.
- Consumers don’t understand the benefits of this technology. It will take some time for it to gain some popularity.
- The companies developing the apps require more time to streamline the technology. There is a limited number of VR developers outside the entertainment sector.
Despite these issues, the future is bright for the VR industry. Goldman Sachs predicts the real estate virtual industry will be at $2.6 billion by 2025, and the entire virtual reality industry will be at $35 billion.
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