Augmented reality is the latest tech innovation that enables someone in front of a device screen to feel like their physically inhabiting the image they’re running their cursor over. It’s brought new depth and excitement to gaming, but it’s also transforming the way advertisers connect with consumers. While some Industries are deploying it like wildfire to enable potential customers to test-drive the products they sell, some say commercial real estate is lagging and needs to incorporate more AR into its sales strategies.https://plnar.co/blog/the-growth-of-virtual-and-augmented-reality-in-real-estate/
How does it work?
An augmented reality ad isn’t simply a flickering image or video that shows shoppers products. It deploys the same technology used in video games, permitting them to roam imaginary worlds as if you were really inside them. AR is as close as a viewer can get to navigating a space that they’re not really in.
What industries have been successful at using AR to sell their products?
Williams Sonoma, IKEA and Lowe’s have been successful at using AR ads that enable prospective shoppers to browse furniture as well as entirely decorated rooms. Education is using augmented reality to reach students who respond to more dynamic learning activities. Retail is enabling clothes shoppers to check out apparel up close just by swiping a handheld screen. Travelers planning trips can walk through resorts or virtually experience hotel rooms and pool areas.
Where does the commercial real estate market stand regarding such a cutting edge way to reach new buyers?
No one can deny that giving users the ability to digitally interact with properties that interest them, is a winning idea. Buyers who want to save time before setting out with a realtor to visit a property or just look at images of it, can visualize a space using AR to decide if it’s something they’d like to tour further https://plnar.co/blog/the-growth-of-virtual-and-augmented-reality-in-real-estate/ The AR tour they take, will satisfy their curiosity as much as a physical one.. Those who intend to renovate to great extents, can use AR to forecast how a space they’re considering purchasing will look with the changes they anticipate before they even make them. Many predict that open houses will become obsolete once real estate fully incorporates AR into its paradigm, but commercial realtors are not using AR yet as much as other industries. Some say commercial realtors still need to adjust.
The commercial real estate industry is never always straightforward. Before working with developers, clients must know what they specialize in and how much expertise they have in their fields. There are many crucial facts to know about commercial real estate development.
The Process Could Take Years
The process from conceiving the idea to finishing the construction could take years. The commercial real estate industry is unpredictable. It takes two to three years for some development plans to reach the first step, which is to purchase the right amount of land. Some plans become legal cases that get tangled up in courts for years.
In other cases, it takes years to finish constructing the building. This delay may be the result of budget deficits, inclement weather, manmade or natural disasters, shortage of materials or workers, etc. Overall, professional real estate developers are hired to handle a project from start to finish.
Different Developers Have Different Duties
The types of real estate properties determine the types of developers’ jobs and tasks that exist. Commercial condo developers are tasked with selling individual condos within a building. Developers of apartment complexes focus on leasing apartments. Other developers focus on constructing office buildings, school campuses or industrial facilities.
Commercial real estate developers have various specializations. Some specialties are determined by the type of building, such as residential buildings, commercial buildings or buildings for lease. Some developers specialize in constructing energy-efficient buildings. Others are knowledgeable in purchase and building on raw land while others understand finance and the steps to obtain funding for projects.
Site Selection is the Most Crucial Step
Many developers agree that the most important step is selecting the site and buying the right amount of land. The success of any business depends on its geographic location and proximity to customers. Similarly, a residential building is effective only when its homes or apartments are located in a safe, comfortable area.
Commercial real estate development includes good ideation, planning, designing and manufacturing. Some facts are obvious, such as the importance of choosing the perfect location. Other facts take some research to learn more about. Not every project can be completed on time because legal challenges may arise. Clients who are planning to work with developers need a good overview of what they’re facing.
There can be little doubt that 2020 was a watershed year for commercial real estate; in the fallout from the COVID-19 pandemic, it is unlikely that the work culture of the United States will ever be the same again. To wit, the concept of work-from-home as a functional business strategy went from the stuff of fantasy to reality in the space of only a few months last year. Anyone in the field of commercial real estate must be aware of this change to plan for the future.
Moving With the Curve
With that being said, there are a few things to consider when analyzing market changes in real estate in 2021. Firstly, expect rent costs to fall in areas such as Silicon Valley and New York City. These areas are still major centers for tech and investment companies; however, locations such as these are seeing mass exoduses of workers who favor home offices to office buildings. If you want to get a foothold in these areas, however, now is a great time to find a bargain.
Real Estate Hot Spots
Secondly, investors should be aware of real estate “hot spots” currently emerging around the country. These are regions where real estate investing is extraordinarily competitive and by extension extraordinarily profitable. Austin, Texas made headlines in 2020 after entrepreneurs like Elon Musk announced that they were moving their corporate operations to this up-and-coming city. Expect a boom in real estate prices in Austin in coming years as Texas becomes a haven for big tech companies keen to take advantage of the state’s generous tax policies.
Other “hot” cities include but are not limited to:
- Portland, Oregon
- Birmingham, Alabama
- Boulder, Colorado
- Louisville, Kentucky
- Missoula, Montana
- Atlanta, Georgia
- Boise, Idaho
Most importantly, however, real estate aficionados should know that the work-from-home trend doesn’t apply equally to every industry across the board. Tech companies employ armies of computer science grads to perform important coding work; certainly, for the most part, it is not necessary for these workers to stay in office buildings to complete their tasks. Consequently, tech real estate may see remarkable changes in the next five years.
Playing Against Type
Despite a shift towards work-from-home thinking in the tech world, however, there is still a lot of office-based work that needs to be done across a variety of industries. For example, most doctor appointments still need to be completed in person; real estate space for healthcare clinics will almost certainly be in very high demand in coming years. The same principle holds for sectors of the economy related to lab work and wholesale supply chains.
To wit, there is still life in the commercial real estate market yet. It is true that investors will need to stay on their toes in coming years as America transitions to a new stage of work culture; however, the benefits will be numerous for investors who can adapt to changing times and changing business needs.
The real estate sector is a crucial pillar of the global economy. Whereas it has taken a major hit thanks to the Covid-19 pandemic, the real estate industry is increasingly getting transformed by adopting new trends. There is a wide range of opportunities ahead of us as far as the industry is concerned. Analysts project that the industry’s future is highly likely going to be defined by certain characteristic trends consistent with response to the identified market gaps.
The future of the real estate industry will undoubtedly focus on adopting technology and integrating it into real estate constructions. The need to have smart homes and offices will drive up the demand for smart homes where technology is integrated into every aspect of home living. This includes home security systems and remote controlling of smart home devices.
Lesser demand for commercial space
The Covid-19 pandemic has taught us one thing – that we can productively work from home. Large businesses are expected to scale down their demand for commercial office space, even as they work towards reducing the number of office workers. As more workers work from home, there is expected to be a gradual decline in the demand for large commercial office rooms. Businesses will leverage the virtual workforce as part of the strategy of reducing overhead costs associated with the ownership of physical office spaces.
Priority in property maintenance
Consumers of the real estate industry are generally more concerned about keeping their spaces in good sanitary conditions. This comes at a time when the pandemic has elaborated the need to keep our environment clean and disinfected. The underlying concept of cleanliness is expected to extend into ensuring that our homes look physically appealing. This is expected to be accompanied by fresh landscaping ideas so as to keep real estate properties attractive to live in.
Changes in property utility
Another of the most remarkable future changes in the real estate industry is expected to touch on the utilization of office spaces. More office space, for example, will go into the adoption of technological tools, such as video conferencing rooms and large television sets to facilitate video conferencing. With the idea of social distancing still fresh in our minds, the number of persons who can live in a specific office space is expected to reduce as part of the maintenance of social distance.