$9.6 billion was invested in the commercial real estate tech sector in 2018. That’s a lot of new technology, and even more new terminology to learn about.
If technology is not your first language, the alphabet soup of acronyms describing all of this new tech can be confusing.
So in this blog post, we’re breaking down 5X of the hottest CREtech buzzwords right now.
Big data is simply all of the vast amounts of data collected over time and stored digitally. According to Investopedia, the formal definition of big data is as follows:
“Big data refers to the large, diverse sets of information that grow at ever-increasing rates. It encompasses the volume of information, the velocity or speed at which it is created and collected, and the variety or scope of the data points being covered. Big data often comes from multiple sources and arrives in multiple formats.”
It’s being talked about because data digitized and organized, has the ability to show us valuable insights precisely and in real-time. They aren’t stacked in a file cabinet somewhere, never to see the light of day again. Investors and brokers can utilize this information to make more informed decisions when it comes to properties.
AI, or artificial intelligence isn’t as dramatic as humanoid robots who can think and feel independently. It’s really any form of automation that can learn and adapt its functionality.
From building automation of smart buildings to customer service and tenant engagement, AI has promising opportunities to increase operational efficiencies for all real estate professionals.
PropTech is short for property technology. It’s a general term that’s given to any technology in both residential and commercial real estate. This can be software or hardware, that aims to change the way we buy, sell and operate all types of real estate.
PropTech not only has the capabilities to improve systems, but it adds value to a property for developers, investors, and prospective tenants.
According to PWC: “The Internet of Things (IoT) consists of an ecosystem of sensors, integrated computers, and smart devices that are connected with each other and a cloud to collect, analyze and evaluate data.”
Many of IoT’s possibilities are in the potential with property management and smart buildings. Features like predictive maintenance and energy control have the capabilities to automate operations and ultimately save money.
AR became mainstream through games like PokemonGo, it’s short for augmented reality. Unlike virtual reality which is completely submersive and takes you to a completely different place, augmented reality simply “augments reality.” Like in PokemonGo, through using GPS and Google Maps, the app creates a game and alternative reality based on your actual location and surroundings.
So how is this used in real estate? For starters, using augmented reality, brokers will be able to tour and ultimately sell properties before they are even finished. Apps can give prospective buyers a life-like experience of development. This will ultimately improve and quicken the buying and selling process.
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