When thinking of tech-forward and innovative industries, what comes to mind?
As of 10 years ago, almost no one would have thought of the commercial real estate industry as innovative and welcoming of advanced technology.
Companies were using non-industry-specific technology like payment software and project management tools to assist with managing developments. Development teams would stretch these point solutions thin trying to force-fit them into a technology tool they actually needed.
At the same time, we were seeing Bloomberg terminals take over the finance industry and construction companies adopting tools like Procore. Real estate development, however, was still an old-fashioned, handshake industry without access to a similar tool to these other knowledge-based industries.
Today, we’re seeing a different story.
Development teams are no longer standing by, watching equivalent fields adopt forward-looking technology. CRE tech is taking the industry by storm as developers are discovering solutions purpose-built for their teams.
So, what’s different about these modern solutions opposed to the legacy systems introduced over 10 years ago?
The answer: automation, data analytics, and artificial intelligence.
The new wave of commercial real estate technology is one that actually improves your workflow and makes your team more efficient, forward-looking, and data-driven instead of just moving your data to the cloud.
So, how are development teams utilizing these new technologies to gain a competitive advantage over their peers?
- Development teams use automation to ensure their technology is talking to each other and automatically syncing data to make sure every department– from the finance, development, and accounting teams– is running with the same numbers.
- Modern teams leverage automation to build their weekly cost reports and draw requests. This not only saves them valuable hours compiling a report package each month, but also ensures teams are minimizing human reporting errors and formatting them consistently for financial partners each month. Teams have been able to reallocate their time into building out forward-looking dashboards rather than backward-looking cost reports.
- By harnessing advanced data analytics tools, you can see where your project will be in 3, 6 or even 12 months into the future and make informed and proactive decisions based on these forecasts. In the past, teams were left using last month’s draw to inform these decisions, which would set them one step behind in catching project delays and cost overruns.
- Accessing and storing this data from project to project is instrumental in informing an initial budget and sourcing reliable and trustworthy vendors for future projects. Teams use this data to minimize the ambiguity and “gut instinct” decisions that usually flood a new development project. This creates a much more repeatable and standardized process for real estate projects.
- Artificial intelligence can act as a digital project assistant for real estate development projects. It not only takes a lot of the legwork out of project delivery, like sorting and inputting invoices into the cloud, but actually gets smarter and smarter as it works. AI is the secret to lean teams scaling their business without increasing headcount.
- Artificial intelligence tools can act as an early warning sign in your project. AI tools can flag in red if teams are over budget in contingency usage, which signals that their remaining contingency might not be enough to complete the job. Same with vendor spending. This allows them to preemptively pivot strategy and make more informed decisions on where to allocate their remaining contingency.
Leading real estate teams have been able to take on bigger and more complex projects by adopting a digital project assistant that utilizes these modern technologies.
Start integrating automation, data analytics, and artificial intelligence into your project delivery workflows with Northspyre. Northspyre is the first purpose-built proactive intelligence tool for real estate project teams – start seeing easier, more predictable project outcomes today.