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Commercial real estate owners must adapt to technology

Experts say that real estate finance is undergoing a major transformation in California and other states. Corporate executives who handle data analysis for commercial real estate businesses and financiers claim that information technology is increasing the level of transparency people have come to expect from the industry. These experts suggest that real estate players take a lesson from industries like health care and finance as they move forward toward more data-inclusive business models.

According to a report by CNBC, data-acquisition technology practices are impacting a number of real estate fields. Investors rely on detailed data analysis to quantify the structural soundness of properties and the financial trustworthiness of prospective owners. Lenders and similar companies use algorithms to assess the financial merit of consumers while buyers count on publicly-available data to learn more about what they might be buying. Some building managers even employ advanced sensors to track the performance of habitability systems and generate automatic work orders.

Although experts note that major upgrades, like installing system sensors in a commercial building, are costly, many believe that the expense is worth it. Reduced wait times between the discovery of problems and the implementation of solutions could increase the efficacy of building management, and the ability to track ongoing issues stands to greatly reduce waste.

As real estate becomes more technologically connected, commercial property owners stand to benefit; however, they also face new problems. In the case of lease disputes, computerized records concerning building maintenance or living conditions may become important evidence in court. While such records could ostensibly be used against property managers, they might also be an effective defense aid. Owners and landlords may find it helpful to learn about the potential legal ramifications of specific systems and tools before they implement them.

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