The PropTech Overview

Proptech, or property technology, has improved the way residential and commercial real estate firms interact with their customers and brokers, as well as rent and sell properties while also providing ease in collecting valuable industry data and managing a robust portfolio of properties.

An example of companies in the property technology industry are Airbnb and Opendoor. In 2021 alone, $32 billion was invested into property technology. This was a 28% increase from investment in 2020 and expectations show that there is no sign of slowing down. Commercial and residential real estate companies are rapidly innovating to provide the best possible product experiences to their end-user. This can help with user retention and keeping up with competition, as well as  with recruiting top talent as solutions can help team members succeed.

Why are Companies Adopting PropTech?

It’s important to note why real estate companies adopt property technology and how they process selecting a solution for their needs. In a recent write-up on innovation in the commercial real estate industry, we referenced to the massive amount of data the industry is sitting on.   Software solutions are now providing transparency in analyzing the data. This is creating faster decision making, as well as higher tenant retention due to increased satisfaction. Additionally, technology is allowing buildings to operate with increased efficiency than ever before. This is allowing real estate companies to optimize their portfolio and increase their ROI. Lastly, analyzing “big data” with ease is allowing companies to provide a better market outlook and seek the most viable investment opportunities.

Providing better user-experiences through technology is allowing real estate companies to make their brokers and tenants their biggest fans. Technology is heightening communication between all parties involved; allowing easier access to documents and forms as well as overall reporting. In turn, this creates an opportunity to maximize the value of the portfolio at hand.

Also, technology is shifting the way that real estate brokers, tenants, and investors interact. The reduced need for physical contact due to innovation is allowing for reduced travel and greater reach for all parties. Technology such as augmented reality and virtual reality is allowing for properties to be toured with ease. This is allowing for a comfortable touring experience and faster decision-making fueled by technology.

Lastly, technologies such as the internet of things (IoT) and geographic information systems (GIS) are facilitating better decision-making and optimizing costs in the process. This provides companies with real-time insights analyzing building and property information to better understand trends, as well as make any necessary changes when they matter most.

How to Evaluate PropTech Software Needs?

It is crucial to understand and set your business goals when searching the market for a software solution. So, what “problem” are you looking to solve for your business? Are you looking to reduce costs? Are you looking to provide a better experience for your brokers? Or, are you looking for better analytics and insights to fuel decision-making? Also, is this intended to be a back-end or front-end solution for your business?

Once you understand the objective, it is then important to decide which specific business segment inside your organization will be using this product. Is this product going to help the search experience for brokers, landlords, and tenants? Is it going to help manage each property more efficiently with a goal of reducing costs and tenant maintenance issues? Or, is this product going to fuel the sales of the company and help brokers access more opportunities?

Lastly, it is important to determine your development approach. evaluating costs, timeline, and product quality are among the most important when seeking out solutions.

Looking Ahead

Proptech is producing amazing opportunities for real estate. Innovation in the industry is spurring better product-experiences and helping real estate companies maximize value.  We are excited for what is ahead in property technology in 2022 and beyond! Codelitt enjoys helping companies create and build new things. If you have a project or idea in mind we’d love to hear from you! Contact us here.