Smart home technology is growing in popularity among residential homeowners and consumers are starting to adopt these technologies. While technologies being utilized in residential properties are along the lines of smart temperature control and video technology for security there are different types of smart technology being used in commercial real estate.
CRE is utilizing technology for smart buildings which includes smart systems that can monitor the infrastructure of the building as well as utilizing technology for retail concepts that monitor inventory as well as provide new shopping experiences like Amazon Go. While CRE may be doing some different things in this space than residential, the industry can learn some things from the residential side. Let’s look at a few of these things:
1. Where the Industry is Heading
Since smart home technology is directly in front of consumers and not necessarily behind the scenes these products can be gauged for their popularity more easily. Also, since most homes need to be retrofitted with these technologies, consumers are making a conscious decision to implement these technologies in these homes.
As this happens and products survive, the CRE industry can interpret this into what technologies they should implement in multifamily that will be more attractive for potential tenants. It will also help to avoid investing in a technology that will fade out of favor.
2. Possible Disruptors in Retail
The retail landscape has changed dramatically as the internet and technology has developed but with smart home technology and smart building technology it could change even more dramatically. As technology helps grow the convenience for consumers, these consumers are looking to spend less time in brick and mortar stores.
Amazon is working towards this already with their Dash buttons which allows simple re-ordering of household products by pressing one button in the house. If technology heads in this direction, then the grocery store may eventually go in the route of Amazon Go and become a smaller footprint.
3. Access to More Data
As smart technologies become more prevalent and the internet of things continues to keep our daily lives connected an increasingly large amount of data is continuing to be collected. For CRE this means the potential to utilize and access more data on how individuals are living in their residences. This could be utilized to help make decisions in specific markets on what the population is interested in and at what times they are in their home or not at home.
Utilizing this information could help to inform businesses of what type of business would be well received in neighborhoods and CRE brokerages could be the ones to deliver that data to them.
With the world becoming more connected and individuals looking for more convenience in their daily lives; smart technologies in the home will only keep increasing. The increase in these technologies will help to provide more knowledge to the CRE industry so that they can make more well informed decisions.