INSIGHT
How proptech is changing commercial real estate
Mark Leverette • February 13, 2025
Industries: Real Estate
Proptech solutions are changing how we buy, sell and manage properties. This transformation affects every aspect of real estate, from commercial developments to residential spaces, creating opportunities for efficiency and growth.
How is proptech making an impact? 4 key areas
This article examines four key areas where Proptech is making the greatest impact: widespread adoption across commercial real estate sectors, the rise of predictive analytics and data management, the emergence of blockchain-enabled smart contracts and the evolution of smart buildings that maximize operational efficiency.
Adoptions among CRE and subsectors
Commercial real estate (CRE) has embraced Proptech solutions at a remarkable pace. According to a recent JLL survey, over 80 percent of real estate investors and developers plan to increase their technology spending in the coming years. This adoption spans various subsectors, including office buildings, retail spaces and industrial properties.
For example, property managers now use integrated management systems to monitor building operations in real-time. These platforms track everything from energy consumption to maintenance requirements, streamlining daily operations and reducing costs. For tenants, this translates to more responsive service and better-maintained facilities.
The retail sector in particular has benefited from Proptech adoption. Smart retail solutions help store owners analyze foot traffic patterns, optimize layout designs and create more engaging shopping experiences. Meanwhile, industrial property managers use automated systems to track inventory, manage logistics and maintain optimal warehouse conditions.
Predictive analytics/data management
Data analytics has become the cornerstone of modern real estate decision-making. Proptech platforms now collect and analyze vast amounts of information to provide actionable insights for property owners and managers. These tools can forecast market trends, predict maintenance needs and identify investment opportunities.
By leveraging data, property managers can now anticipate tenant needs before issues arise. Predictive maintenance algorithms analyze building system performance data to schedule repairs proactively, reducing downtime and extending equipment life. This data-driven approach helps property managers optimize operational costs while improving tenant satisfaction.
Market analysis has also evolved through Proptech solutions. These platforms analyze historical data, current market conditions and economic indicators to provide accurate property valuations and market forecasts. This enables investors and property owners to make more informed decisions about acquisitions, disposals and property improvements.
Smart contracts/blockchain
Blockchain technology is revolutionizing property transactions through smart contracts and secure digital records. These innovations reduce paperwork, speed up processes and increase transparency in real estate dealings. Smart contracts automatically execute when predetermined conditions are met, streamlining property transactions and reducing the risk of fraud.
The technology also enables fractional property ownership, opening real estate investment to a broader range of investors. Through tokenization, properties can be divided into smaller, more accessible investment units, increasing market liquidity and democratizing real estate investment.
Smart buildings/operational efficiency
Smart building technology represents one of Proptech’s most visible impacts on the real estate industry. Internet of Things (IoT) sensors and automated systems work together to create more efficient, comfortable and sustainable buildings. These technologies optimize everything from lighting and temperature control to security and access management.
Building managers now use integrated platforms to monitor and control all building systems from a central dashboard. This integration allows for real-time adjustments to maintain optimal conditions while minimizing energy consumption. Smart buildings can automatically adjust lighting and temperature based on occupancy patterns, leading to significant energy savings.
The implementation of smart building solutions also improves the tenant experience. Mobile apps allow occupants to control their environment, book amenities and report issues directly from their smartphones. This level of control and convenience has become important for attracting and retaining tenants.
Benefits of Proptech adoption
| Benefit Category | Impact |
|---|---|
| Operational Efficiency |
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| Cost Management |
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| Data & Analytics |
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| Tenant Experience |
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| Sustainability |
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| Market Growth |
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AI and Automation Transforming Real Estate & Finance
Dealpath streamlines real estate deal management by centralizing data, automating workflows, and providing real-time insights. It leverages AI to enhance decision-making across acquisitions, dispositions, development, and financing.
Financial reporting automation simplifies tasks like data entry, reconciliation, and report generation. BPM leverages industry leading tools like FloQast, which improve accuracy, reduce errors, and boost efficiency, allowing firms to focus on strategy while ensuring compliance.
Key takeaways
- The commercial real estate sector is rapidly embracing Proptech, with over 80% of industry stakeholders planning to increase their technology investments
- Predictive analytics and data management are transforming decision-making processes, enabling proactive maintenance and more accurate market forecasting
- Blockchain technology and smart contracts are revolutionizing property transactions, making them more secure, efficient, and accessible
- Smart building solutions are creating more efficient and sustainable properties while significantly improving tenant experiences
- The Proptech market is experiencing dramatic growth, projected to reach $50 billion in the next decade, making it a crucial factor in future real estate success
Working with BPM
The future of real estate lies in the continued integration of proptech solutions. As these technologies evolve, they will create even more opportunities for innovation and improvement in property management, transactions and user experiences. Working with knowledgeable partners who understand both the technology and real estate landscapes will become increasingly crucial for success in this rapidly changing industry.
Look for our next piece, where we dive into the best starting points for navigating proptech.
Mark Leverette
Partner, Assurance and Advisory
Outsourced Accounting Leader
Real Estate Leader
Mark has devoted 20 years of experience to entrepreneurial companies. As the Managing Partner of Client Accounting and Advisory Services …
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