As innovations make their way into the industry and new construction and design trends emerge, there is no doubt that this is an exciting time for startups taking off in the commercial real estate industry.
At the same time, the CRE landscape isn’t free of challenges, and new companies in their most vulnerable face often succumb to the growing competition, labor shortages, and lack of materials.
Luckily, new technologies can help CRE startups establish solid and resilient roots in the market.
Here’s how.
Automating Resource-Intensive Processes
According to the new 2023 commercial real estate outlook report by Deloitte, sustained high inflation and workforce management are two of the top industry concerns on a global scale.
And, compared to established enterprises with more significant resources, for bootstrapped startups operating on a tight budget, it is all the more important to find ways to reduce overhead, optimize labor costs, and maintain a reliable cash flow.
Today, this is achievable thanks to automation software. New applications designed with the needs of CRE companies in mind can reduce the need for human input in resource-intensive tasks and allow startups to optimize the use of their talents for higher-value projects.
Reducing the Needs for Third-Party Providers
Today, commercial real estate projects call for the intervention of a wide range of professionals and third-party providers. For example, real estate transactions require the assistance of legal teams, financial experts, underwriters, brokers, and appraisers.
However, new startups willing to embrace PropTech can now take advantage of blockchain-based technologies, which allow them to streamline property transactions, reduce timelines, and minimize the need for third-party professionals.
Casey Ames, a licensed realtor from Gem State Cash Offer says that by using real estate technology, he saved money. ‘Automation ‘reduced the chances of errors and increased the quality of the data for us. Plus, it allowed the company to have more control over our data and how it is used.’
Creating Laser-Targeted Marketing Campaigns
Investing in marketing is essential for all startups looking to excel in the real estate industry. However, marketing and advertising campaigns don’t come cheap – and are certainly not free of errors!
Thanks to social media marketing, big data, and automation, the marketing departments of CRE startups can now design laser-targeted market campaigns, avoid misspending precious resources, and eliminate inefficiencies. What’s more, AI-powered software can elaborate large datasets of market data, thus giving startups access to accurate insights and emerging trends.
Effortlessly Managing Every Step of the Real Estate Development Process
Real estate development projects are inherently complex and prone to risks. And, for startups looking to tap into the CRE development sector, the limited resources and high costs can represent significant entry barriers.
However, new automation technologies and user-friendly platforms such as Northspyre are changing the game for small and large enterprises in the industry. Today, real estate developers can access all the data related to their projects from a single interface, reduce costs, and maximize the use of precious resources.
Avoiding Pitfalls and Costly Mistakes
Even the smallest construction mistake or design flaw can cost developers losses of millions of dollars – especially if the error is only uncovered at later stages of the construction process! Even worse, a mistake can stain the reputation and cash flow of a young startup, thus increasing its chances of failing.
Luckily, most of these mistakes can be easily avoided through the introduction of Building Information Modeling. BIM systems allow companies to optimize costs and resources, reduce the project lifecycle, improve communication among the parties involved, and more importantly, mitigate the risks associated with developing a commercial or industrial property.
Even the smallest construction mistake or design flaw can cost developers losses of millions of dollars – especially if the error is only uncovered at later stages of the construction process! Even worse, a mistake can stain the reputation and cash flow of a young startup, thus increasing its chances of failing, warns us Carter Crowley, co-owner, licensed Realtor at CB Home Solutions.
Making Better Real Estate Investments
Although today’s accurate market insights have made it easier for real estate investors to forecast their returns, a single wrong investment can undermine the success of any startup. That is why young companies in the sector must leverage new technologies in their business decision-making process.
From providing access to large datasets to pinpointing emerging market trends and highlighting less-than-obvious risk factors, real estate investment technology is helping startups avoid costly mistakes.
Real Estate AI helped us research properties, estimate repair costs, and find good deals on properties that lead us to make better investment decisions. We are using a software to helps us keep track of our investments, budget for repairs and renovations, and track the performance of our portfolio, says Anthony Minniti, an investment expert from Texas Land and Home.
Scaling Up Operations
For any startup, keeping up with the forecasted growth rates is a top priority. But while growth often equals success, it also means larger investments, greater risks, and more difficult challenges.
Luckily, new PropTech solutions are designed with the growth needs of CRE companies in mind and they can effortlessly support scaling, thus helping startups reach the next level without bank-breaking investments.
Technology can help streamline and automate many of the tasks associated with real estate operations, from listing properties and tracking leads to scheduling appointments and managing finances, says George Beatty, founder of Problem Property Pals. By using technology to automate repetitive tasks, real estate professionals freed up time to focus on more important tasks, such as marketing properties and negotiating deals. It really helped keep track of our progress and performance, allowing us to identify areas where we needed to improve.
