As innovations make their way through 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 sector. .
At the same time, the CRE landscape is not free from challenges, and new businesses in their most vulnerable face often succumb to growing competition, labor shortages, and lack of materials.
Fortunately, new technologies can help CRE startups establish strong and resilient roots in the market.
Automation of resource-intensive processes
According to the new 2023 Commercial Real Estate Outlook Report by Deloittehigh and sustained inflation and labor management are two of the industry’s top concerns globally.
And, compared to established businesses with greater resources, for seeded startups operating on a tight budget, finding ways to reduce overhead, optimize labor work and maintain a reliable cash flow.
Today, this is possible thanks to automation software. New applications designed with the needs of CRE companies in mind can reduce the need for human intervention in resource-intensive tasks and allow startups to optimize the use of their talents for higher value projects.
Reduce the need for third-party suppliers
Today, commercial real estate projects require 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 adopt PropTech can now take advantage of blockchain-based technologies, which allow them to streamline real estate transactions, reduce delays and minimize the need for third-party professionals.
Creation of 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 certainly aren’t error-free!
Using social media marketing, big data, and automation, CRE startup marketing departments can now design laser-targeted go-to-market campaigns, avoid wasting valuable resources, and eliminate inefficiencies. Additionally, AI-based software can craft large sets of market data, giving startups access to accurate insights and emerging trends.
Effortlessly manage every step of the real estate development process
Real estate development projects are inherently complex and subject to risk. And, for startups looking to tap into the CRE development sector, limited resources and high costs can represent significant barriers to entry.
However, new automation technologies and user-friendly platforms such as Northspyre are game changers for small and large companies in the sector. Today, property developers can access all of their project-related data from a single interface, reducing costs and maximizing the use of valuable resources.
Avoid pitfalls and costly mistakes
Even the smallest construction error or design flaw can cost developers millions of dollars, especially if the error is not discovered until later in the construction process! Worse still, a mistake can damage a young startup’s reputation and cash flow, increasing its chances of failure.
Fortunately, most of these errors can be easily avoided with the introduction of Creation of information representation systems. BIM systems allow companies to optimize costs and resources, reduce the project life cycle, improve communication between the parties involved and, most importantly, mitigate the risks associated with the development of a commercial or industrial property.
Make better real estate investments
Although today’s accurate market information has made it easier for real estate investors to predict their returns, one bad investment can jeopardize the success of any startup. This is why young companies in the sector must take advantage of new technologies in their business decision-making process.
From accessing large datasets to identifying emerging market trends and highlighting less-than-obvious risk factors, real estate investment technology helps startups avoid costly mistakes.
For any startup, keeping up with predicted growth rates is a top priority. But while growth often equals success, it also means greater investment, greater risk, and more difficult challenges.
Fortunately, new PropTech solutions are designed with the growth needs of CRE companies in mind and they can effortlessly support scaling, helping startups reach the next level without bank-breaking investments.