Tech is on the rise in commercial real estate (CRE) and property management. That’s according to a new First Research report on the industry, which states that property management companies are increasingly using technology to help them monitor commercial leases and manage services.
And with the market hopefully poised for a long, strong recovery after enduring more than two years of a pandemic, now is the perfect time to invest in tech that aids both growth and the bottom line.
According to Forbes: “While this climate is anything but certain, the current conditions appear favorable: Historically, commercial real estate has provided a hedge against inflation; stock-focused investors are expressing interest in diversifying through real estate; and monetary policy appears to support growth in the economy.”
The big players
The largest companies in the commercial real estate management space include CBRE, Cushman & Wakefield, and JLL in the U.S.; as well as Colliers (Canada), IWG (Switzerland), Lendlease (Australia), and Mitsubishi Estate (Japan). An estimated $10 trillion is invested in professionally managed global real estate, according to MSCI, an American finance company and global provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, and ESG products focused on environmental, social and governance principles.
The U.S., U.K. and Japan comprise the top markets in the commercial real estate space, while New York, London, Paris and Tokyo continue to lead in global transactions. In the U.S., the commercial real estate management industry generates an annual revenue of about $27 billion.
Demand drives commercial real estate occupancy levels. Larger companies have an advantage in that they are well positioned to provide a range of management services across various markets. Nonetheless, smaller companies can compete effectively by specializing in local markets. The pie is well divided in this highly fragmented industry, with the top 50 companies accounting for about 40% of revenue.
Technology to the rescue
CRE management solutions help ensure customer service and operations efficiency, which in turn determines the profitability of individual companies. Property management companies increasingly use technology to monitor commercial leases and manage services. Web-based property management software allows vendors, partners and tenants to collaborate more effectively. It can also track and coordinate maintenance, cleaning, legal and accounting functions, while promoting greater energy efficiency and sustainability, and improving security systems.
By combining big data with predictive analytics, companies can make better informed decisions, identifying opportunities and growing their business through personalized services and the effective interpretation of trends.
The proliferation of mobile technology means employers are reducing their office footprint, while traditional retail owners are also reducing store square footage and shifting capital toward growing e-commerce platforms. These trends have led to an expansion of industrial warehouse space.
Property management software is imperative
Property management software helps landlords and real estate professionals track leases, residents, and maintenance tasks, as well as collect rent and manage finances to reduce costs and streamline operations.
Budgetrac is a fully integrated web-based end-to-end solution that provides a comprehensive tool set that delivers quick and accurate accounting, property management, and ﬁnancial reporting software for development, commercial and residential property management to any real estate organization.
Exceptional property management reports are a requirement for accountants and property managers. Managers need to focus on up-to-the-minute information to make proﬁtable decisions, without putting extra demands on the accounting department–the data needs to be at their ﬁngertips. Budgetrac’s property reports and dashboards deliver on this requirement.
Budgetrac;s Property Manager homepage provides one-click access to pertinent information and reports. This homepage allows you to manage all aspects of your properties such as lease administration, space management, expense recoveries, property attributes and correspondence management, just with the click of your mouse. All summary and detailed key performance indicators of your properties are presented in a simpliﬁed format – not a data entry screen. Property Management reports are only one-click away.
For more information or a demonstration of Budgetrac software, please contact us!