What is Real Estate Technology?
Definition
Real estate technology, also known as PropTech (property technology), is an emerging class of information technology and software tailored to the needs of real estate owners, operators, brokers, investors, tenants, and developers.
Real estate technology includes, but is not limited to, the following market segments:
- Smart home: Digital devices focused on creating smart homes,” such as Amazon's Alexa
- Tenant experience (Ten-X): Software platforms used by property managers to better engage with tenants, streamline processes such as rent collection, and enable mobile access controls
- Operational intelligence: Software platforms used by owners and operators to streamline “back of house” workflows, reduce operating expenses, and gain better visibility into what’s happening in the portfolio..
Why it Matters
Real estate technology allows property owners and operators to better manage their assets. The goal is to minimize paperwork, streamline transactions, improve property management services, and maximize operational efficiency
Since the importance of Environmental, Social and Governance (ESG) measurement and disclosure is growing, real estate technology will also be an essential tool to support the commercial real estate industry meet ambitious sustainability goals. With PropTech, managers and operators can identify which areas of improvement are needed to increase their ESG ratings and occupants can monitor in real-time metrics such as indoor air quality data.
