Tech in CRE

CRE tech news roundup: July 2019

Tech in CRE

CRE tech news roundup: July 2019

August 2, 2019

From smart offices to futuristic furniture, we’re bringing you the latest news in CRE tech.

Location analytics will improve commercial real estate

An AI-powered platform called Near that gathers data about human behavior just raised $100 million in funding. Their software-as-a-service (SaaS) offering, Allspark, uses location analytics to see how many people go to a location, how long they stay, how far they traveled to get there, and more. This data is collected through smartphones, sensor networks, and other connected home devices.

CRE developers, investors, and buyers who specialize in retail properties could use location analytics-driven SaaS like Allspark to identify “hotspots” where customers are likely to spend time and money. By focusing their business transactions in proven areas of retail spending, they’ll be taking the natural step in bettering their chances of profits.

How the coolest offices are getting smart

Crain’s recently released this year’s list of the Coolest Offices in New York City. A common theme on the list was how the offices use data-driven insights to improve employee experiences. Using sensors that measure which sections of an office see high foot traffic or phone-tracking beacons that analyze how employees interact, every corner of these offices can be tailored to a specific purpose.

The trendiest, tech-enabled offices will likely spark business best practices in offices across the country. CRE developers, owners, and brokers can pay attention to these companies and the tools they use to attract companies interested in innovative office amenities to their own spaces.

Ikea introduces new robotic furniture

‘Rognan’ is a touchpad-controlled piece of futuristic furniture set to go on sale in 2020. This modern, do-it-all piece automatically converts into a bed, a room divider, a couch, a desk, a closet, and storage shelving. It’s intended for use in studio apartments and other small living spaces.

As populations flock to urban areas, younger apartment renters and condo buyers are looking for ways to maximize the value of their small spaces. Rognan is a good way to do that, and could be a smart investment for multifamily building owners looking to add value to their properties.

Industrial real estate demand growth is slowing

Deloitte recently announced they’re expecting large e-commerce sales growth to create approximately 850 million square feet of industrial real estate demand between 2019 to 2023. They went on to note that while warehouse demand growth is predicted to increase, industrial real estate’s overall pace of growth could dip to .9% annually—half of what it was in 2018.

Despite this, our 2018 DNA of #CRE survey found that almost a quarter of the brokers we surveyed expected to sell or lease industrial properties the most in 2019, just behind those who expected to sell or lease office spaces the most.