When it comes to embracing technology, the commercial real estate sector lags behind the equity market. However, the proptech revolution has taken over the sector in recent years, reducing time-consuming and outdated procedures. Many businesses are combining functionality from various dissimilar platforms to increase productivity and efficiency. Dealpath, a piece of investment management software that brings together deal data, workflows, communications, and files in a single place, is a good example.
Because of this, millennials are drawn more and more to suburban and secondary markets. In actuality, 2.6 million Americans moved from cities to suburbia during the course of the last two years. This transition happened mostly as a result of millennials starting families and relocating to bigger homes in the suburbs. Since many of these newcomers wanted to live in neighborhoods that were easy to get to on foot or by public transportation, retail development grew in these areas.
COVID-19 will therefore continue to affect the demand for real estate. Different commercial real estate sectors will be impacted by this pandemic, and the impacts of rapid changes and surges are anticipated to be severe. The market is anticipated to expand as new technologies and ESG standards are introduced, but the economic forecast for commercial real estate is still positive. Smart technology will help property managers take better care of their properties and make better decisions, which should be good for the market.
These markets are advancing, despite the fact that many investors have lately concentrated their attention on multi-family properties. The need for larger homes has resulted from people spending more time at home. Vacancies are likely to stay high in the office sector, which has undergone a significant reset. While new construction is restricted, demand for residential real estate is nevertheless increasing. All of these elements are causing rents and housing prices to rise.
Digital property is yet another development in commercial real estate. Thanks to digital technology, a house can be visited by someone without them ever having to set foot in it. Furthermore, property owners can reach their target consumers by selling their properties using digital technologies. They may obtain a competitive advantage and improve the value of their companies as a result. Another development to watch out for is how this technology affects regional marketplaces. The digital transformation of real estate has already made it possible to get in touch with potential renters and buyers.