We’re in the middle of a complete sea change in terms of technology transforming how we access data and process information to make business decisions…
Now days, everyone has access to every piece of data they care about in the palm of their hand; which I think will not only change the speed of the industry, but also help the individual react to things, and this can alter the analysis of how we buy and sell as well.
Data mining and targeting through Google and other search engines has become much easier over the past several years, with terabytes of data now available.
Quick Question; What do real estate brokers, insurance/ brokerage clerks and telemarketers have in common?
Answer: Their industry is gonna see a tsunami of change soon.
When it comes to the real estate industry, not much has changed in the past 50 years. Real Estate purchases especially for commercial usage such as office space and warehousing still is very high compared to other business expenses.
But, If you ask any property buyer, residential or commercial, "would you like to avoid paying commission on your purchase?" -- the answer will be a resounding yes. The reason people still pay the commission and hire a real estate agent isn't because they want to hire one, it's because they're afraid that something will go horribly wrong if they don't.
Today, with the speed artificial intelligence has been advancing recently, it's poised to replace sales agents within the next ten or twenty years. I predict that any company that can simplify the real estate purchasing process and help buyers handle the paperwork themselves(with or without AI) will cause massive disruption in real estate. My take is that any Businesses that can (work) -produce an app/ block chain system to reduce those commissions paid out; will see major success in the years to come.
For Instance, they will need to :
- Improve property search process (already available)
- Expedite pre-lease due diligence ( Ai is already available for this purpose)
- Ease leasing and subsequent property and cash flow management (This is still open for new entrants )
I forsee the adoption of block chain systems in CRE (commercial real estates) to be already on the minds of many a CEO in Development and REIT companies in their effort to rationalise staff costs.
The same goes for Land Titles, Filing and other back room administrative work the government usually handles. Block chain tech will soon be utilized to ensure manual filings and departmental procedures are a thing of the past.
Change is Coming...whether we are ready or not.