Technology Is Creating New Ways to Leverage Commercial Real Estate Loans

imagesddThe real estate industry is catching up with the digital revolution. You’ll get more out of your commercial real estate loan if you understand the new status quo.

The commercial real estate game is extremely dynamic. That’s why it’s a surprise that technology driven solutions have only began to catch on over the past decade. The next generation of lender tools, building management solutions and other critical real estate systems will take advantage of the latest advances in digital communications and real-time monitoring. These updates will help take the industry to new heights and change how investors spend their commercial real estate loans.

How does this information affect investors? As adoption rates increase and tech-driven services become the status quo, your company will need to stay abreast of changes while planning redevelopment and fix and flip projects. The shift in the industry also requires dedicating a larger percentage of your commercial real estate loans to technology upgrades. That being said, take a closer look at how technology is driving major changes in the industry.

● Major Players Recognize Importance of CRE Tech – One great example of the industry’s shifting focus onto technology was the recent founding of JLL Spark, a subdivision of industry giant JLL dedicated to innovation in the industry. Recently, JLL Spark co-CEO Mihir Shah shared his thoughts on technology’s impact on the industry with Forbes:

“…[L]ike it has in so many sectors of the economy, tech has started to take hold in real estate. It’s not hard to imagine technology transforming real estate like it did transportation,” said Shah. “Once technology takes hold, it’s not going to stop.”

● Investments In CRE Tech Higher Than Ever – There’s no clearer evidence to how important technology has become to commercial real estate than how big players in the industry are spending their budgets. According to data collected by research firm CB Insights, interested investors pumped approximately $2.6 billion into commercial and residential real estate tech startups in 2016 alone. Compare this to the $221 million invested in 2012 and it’s clear that the industry gives considerably more weight to the advantages technology can promise.

● CRE May Soon Jump On The IoT Bandwagon – If there’s any technology on a collision course with commercial real estate more than any other, it’s got to be the Internet of Things (IoT). Interconnected, digital communication platforms stand to revolutionize how businesses operate and share information internally, as well as with clients and customers. This is of special interest to companies investing in commercial office projects and mixed-used redevelopments. Understanding how interconnected technology affects customers and impacts the cost of running a business will play a huge role in the industry for years to come.

Millennials Are Driven Toward Tech-Driven Work Spaces

The tech-savvy workshop grows more influential every year. Incorporating the latest technology and collaboration tools into your commercial real estate investment is simply way to make your assets considerably more appealing to a wider audience.

Don’t overlook the impact that technology can have on how you invest commercial real estate loans.

Want to incorporate new technologies into your redevelopment but didn’t account for the upgrade in your original loan? Reach out to a private lender to stay up to date instead of falling behind.

Dennis Dahlberg
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177 NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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