Commercial real estate (CRE) has come leaps and bounds from past eras, when clunky software and inconvenient access control were commonplace. Today, professionals involved in CRE view tenants and occupants as customers who deserve a high-quality, enjoyable experience. To make that possible, while also improving operational efficiency and sustainability, many property owners, landlords, managers, and investors are using proptech to enhance their buildings.
Proptech refers to a wide range of different digital technologies that make real estate transactions and management less complicated and more transparent. In this article, we’ll explore exactly what proptech does, what advantages it offers, and how you can use it. We’ll also share seven specific examples of proptech companies that are reshaping the world’s approach to CRE.
What is proptech? #
Property technology, or proptech, brings together real estate and technology. Also known as real estate tech or CRE tech, it encompasses any technology that relates to a built environment, whether that’s a single family home or a sprawling manufacturing facility.
The purpose of proptech #
People involved in the research, purchase, sale, and management of real estate use proptech to make their jobs easier and more efficient. Like fintech in the financial services sector, proptech should simplify and enhance your interactions with a property.
Whether you’re trying to buy a new building or optimize your energy use, proptech cuts back on paperwork and repetitive tasks. At the same time, it improves relationships between different parties involved with the property, such as owners and tenants.
Residential and commercial proptech #
Proptech is available for both residential and commercial properties. Although proptech solutions in both spaces offer some similar features, they also differ significantly because they’re tailored to their specific property types.
Residential proptech is intended for properties such as multifamily buildings, student housing, gated communities, and senior living facilities. Some of the most common types of proptech for residential uses include:
- Access control
- Video intercoms
- Smart thermostats
- Property management tools, such as leasing assistants and website chatbots
Commercial proptech, on the other hand, is intended for use in office buildings, event venues, and industrial, retail, and coworking spaces. It includes any technology that helps support the purchase, sale, management, or use of a commercial building, with options such as:
- Climate management software that automatically adjusts lights and temperatures based on occupancy or time
- Visitor management and online booking platforms to prevent double-bookings
- Access control products, including video intercoms and mobile apps for seamless tennant experience.
While it’s possible to use residential proptech for commercial spaces, you’re generally much better served by choosing a commercial product that addresses the unique needs and features of these types of spaces.
Types of proptech #
There are varieties of proptech for all parties involved in CRE, from buyers and investors to property managers and business owners. The specific kinds of solutions that you can deploy include:
- Property management software
- Leasing and marketing software
- Construction and development software
- Asset and property management software
- Access control and security solutions
Ideally, you can mix and match the types of software and hardware that you need for your property and integrate them to create a unified system.
How big is the proptech industry? #
Today’s proptech industry is expanding at an accelerated pace. The global proptech market size reached $30.16 billion in 2022 and is expected to reach $133.05 billion by 2032.
The increasing popularity of smart buildings and communities is driving much of this growth. Other contributors include advancements in artificial intelligence (AI), machine learning, virtual reality, and Internet of Things devices (IoT) in the real estate industry.
These are some of the most prominent proptech companies in the market today:
Newer names in the space include BeamUP, Enertiv, LeaseAccelerator, and DoorLoop. These companies are leveraging innovations in technology like AI to transform the CRE landscape.
Benefits of proptech for commercial spaces #
Commercial proptech offers many advantages, particularly when compared to more traditional, manual solutions. The benefits extend across virtually every aspect of owning and operating a commercial property.
Streamlining operations #
With the right proptech solutions, you can simplify and speed up tasks such as collecting rent payments and security deposits, taking maintenance requests, managing visitors, and communicating with tenants. Some solutions have automation capabilities that take care of these types of tedious activities on your behalf, allowing you to put your focus on other areas of your business.
A cohesive proptech system with multiple integrated tools also supports a more seamless flow of people and transfer of information, increasing efficiency and reducing the risk of errors.
Cutting costs #
Proptech provides multiple opportunities to decrease your spending. For example, owners and managers can use HVAC and lighting automation to reduce their energy consumption and lower their bills. Likewise, a proptech solution for access control like Kisi allows you to secure your space without employing a full-time, on-site security team. Proptech can also help you detect and prevent money loss due to fraud.
Improving safety and security #
Crime is a common concern for commercial properties, especially those located in cities and heavily populated areas. Proptech can help safeguard tenants, assets, and physical spaces. Video surveillance, for example, is an excellent way to deter vandalism and property damage. Access control systems are another necessity in a CRE building. They limit who can enter or exit a building, making theft and violent crime less likely.
Enhancing the tenant experience #
A commercial building with cutting-edge technology doesn’t just benefit the owners or managers. It also creates a smoother, more enjoyable experience for tenants. Buildings with proptech solutions that control environmental conditions help tenants feel more comfortable and productive. Likewise, a building with mobile access control makes it easy for tenants to enter the building without carrying keys or ID cards.
Implementing this kind of technology in your property sets it apart from other options. The tenant experience that you create with proptech makes it a more attractive option for businesses or other organizations looking for commercial spaces. As a result, commercial property owners and managers who use proptech often experience shorter periods of downtime between leases.
What to consider when choosing CRE proptech #
With so many proptech solutions on the market, it can be difficult to decide which ones are the right fit for your properties. Before you invest in any proptech, take time to carefully research and evaluate your options, keeping these factors in mind.
Features #
Narrowing down the types of proptech features to look for is challenging because they vary so widely based on the type of solution. However, there are some general characteristics that are essential for almost any proptech:
- Data management: A good proptech solution will have an excellent data management system with backups so it can safely and efficiently store, organize, and transfer information.
- Cloud-based functionality: Proptech with mobile apps and cloud-based tech allows you to access and manage your tasks and information from anywhere rather than requiring you to be on-site.
- Reporting capabilities: Proptech with analytics and reporting helps you analyze your operations and find potential areas for improvement.
- Security: For proptech that collects or stores data, ensure you choose a solution that has appropriate security measures in place to minimize data loss or breaches.
Finding proptech that addresses all of these points is crucial, particularly if you want to get the most value from the solutions you select.
Automation #
Many of today’s biggest proptech companies are leveraging automation to make life easier for people involved in CRE. For example, proptech software that automates maintenance tasks or performance analysis can save a property owner money and time on repairs. According to Deloitte’s 2023 Commercial Real Estate Outlook, more than 43% of survey respondents said their top proptech priority was automation, while around 35% were looking for proptech that offered marketplace data and analytics.
Installation and maintenance requirements #
Another crucial factor to consider when choosing proptech is the difficulty of installation. Some proptech requires extensive wiring or updates to your existing infrastructure. You might also need help from an experienced third-party installer. The cost of these expenses should factor into your budget, on top of the price of the proptech itself.
In addition, think long-term about what kinds of maintenance and upgrades your proptech will require in the future. For instance, is it a solution that you can easily scale as your business grows, or will you need to spend significant funding to expand it down the line? Some solutions, like Kisi, consider these challenges and offer various deployment options.
Integrations #
Commercial real estate owners and managers, landlords, and investors often use a range of digital tools for their properties. Combining those systems into a unified tech stack is essential because it allows you to seamlessly move data from one system to the other, reduce errors and miscommunications, and see a more comprehensive picture of your property.
When you choose proptech software, look for options that can connect to your customer relationship management (CRM) software, accounting applications, and access control programs. For example, you can integrate two proptech solutions, Kisi and Sharry, to create a streamlined workplace experience and straightforward access control with digital employee badges.
7 innovative proptech solutions for commercial properties #
Over the past decade, hundreds of new proptech companies have launched worldwide. That means you have a lot of options to sort through when looking for the right ones for your situation and needs. These are some of the best proptech solutions to put at the top of your list.
1. Placer.ai #
Placer.ai aims to help CRE properties increase their revenue by providing location analytics that can inform your decision-making. Suitable for retail, office, industrial, and multi-family sites, Placer.ai can monitor activity levels, foot traffic, and demographic trends around a property. It can also identify workforce characteristics and consumer behaviors, including how long visitors linger at a site.
In addition to using the software to evaluate your own property, you can examine your competitors, looking at their visitation trends and ranking data to see how your property compares. All this information can help you approach investment and acquisition decisions more confidently, determine what types of tenants would be the best fit for a space, and negotiate leases more successfully.
Reviews of Placer.ai
“Placer.ai has helped us gain a much deeper understanding of our customers’ behavior and preferences. This has allowed us to personalize our marketing efforts and improve the overall customer experience.” Source: G2
“Pricing is always one of the critical aspects while deciding and finalizing the product, and Placer.ai is a bit on a premium side.” Source: G2
Placer.ai pricing
Contact Placer.ai for a customized subscription package.
2. CompStak #
CompStak’s two central products are CompStak Exchange and CompStak One. Exchange helps CRE professionals access free sale and lease comp data to improve their negotiation strategies. The details in Exchange include starting and effective rents, concessions, sale prices, and cap rates.
CompStak One is a suite of CRE tools: Lease comps, sale comps, loan data, property information, and analytics. It allows you to compare a property with other assets in the market, mitigate risk, and increase your market knowledge. CompStak’s coverage includes office, retail, industrial, and multi-family properties.
Reviews of CompStak
Reviews for CompStak One are not currently available. Below are reviews for CompStak Exchange.
“CompStak is usually spot on with the information that is provided. Not only are you able to get small details on similar comps, but I’m able to better serve my clients because of it.” Source: G2
“I wish there was an easier way to share my comps. It can be time consuming to input lease info.” Source: G2
CompStak pricing
Contact CompStak for detailed pricing information.
3. Matterport #
Matterport uses 3D space capture technology to create interactive walkthroughs using digital twins. The software is designed for multiple industries, including property marketing, facilities management, and design and construction. Matterport uses a range of cameras and AI tools to capture footage of properties and transform it into useful data.
The software’s key features include layouts, labels, measurements, and analytics. In combination, these functionalities support improved remote collaboration, effective marketing capabilities, and accurate risk assessments. For example, a property or facilities manager could use it to identify inefficiencies and flaws in their layout and operations.
Reviews of Matterport
“Matterport is incredible for creating impressive virtual tours that look incredibly professional . . . fast. Matterport software and support is second to none and I’m seriously impressed with the availability to share completed products with clients.” Source: G2
“The software has its strong points for 3D walkthroughs and makes it very good software. The only problem is that sometimes the images take time to load.” Source: G2
Matterport pricing
Matterport offers a range of pre-made plans as well as custom quotes for enterprise-level organizations.
4. Enertiv #
Enertiv describes itself as an operational intelligence platform for CRE. It centralizes information for all of your equipment, storing photos, nameplates, condition, lifespans, and repair history. You can access this information simply by scanning a QR code.
When you purchase Enertiv, survey technicians will visit your site to create a digital inventory of your meters and equipment. This helps you maintain long-term knowledge of your assets and can assist in asset sales. Enertiv can also automate meter reading and invoice generation for greater operational efficiency, helping to prevent tenant complaints and equipment breakdowns.
Reviews of Enertiv
There are currently no reviews available for Enertiv.
Enertiv pricing
Enertiv provides estimated pricing, but contact them for a customized quote.
5. VTS #
VTS offers separate solutions for leasing and asset management and tenant and resident experiences for CRE. The platform’s leasing and asset management products allows for online management of deals and leases, enabling faster and more effective collaboration between marketing and leasing teams.
The VTS solution for tenant and resident experience is known as Activate. It offers a variety of capabilities, including work orders, preventative maintenance, communications, bookings and reservations, tenant engagement, and visitor management. VTS also recently launched VTS 4, a predictive analytics platform that supports more aggressive prospecting and a deeper understanding of leasing demand.
Reviews of VTS
“VTS is a great asset management and leasing tool. It allows an asset manager to physically see the real-time leasing activity, stacking plans, lease roll, and more. VTS neatly organizes all the leasing activity in one location, allowing me as a leasing broker to visually see the deals I am working on and continue to move the ball forward with each one. Tying it into the landlord’s lease administration software allows me to look up lease expirations, stacking plans, and encumbrances for quicker and more educated response times.” Source: Capterra
“There seem to be a lot of features that are not clear as to how to use them. Maybe tutorials would help users better understand unique tools that are accessible on the software.” Source: Capterra
VTS pricing
Contact VTS for detailed pricing information.
6. Sharry #
Sharry is a workplace experience platform that focuses on digital employee badges. The company offers two products: Sharry Workplace for Enterprises and Sharry Building for Landlords. The workplace product includes enterprise mobile access, visitor management, and hybrid work tools.
The landlord product also offers mobile access and visitor management, as well as smart parking and tenant engagement. Sharry prioritizes smart property management for greater control and community management. It’s a white-label and customizable solution that you can tailor to your particular organization’s needs.
Sharry includes native integrations with Kisi, bringing together optimized workplace and tenant experiences with strengthened security and access control.
Reviews of Sharry
There are currently no reviews available for Sharry.
Sharry pricing
Contact Sharry for detailed pricing information.
7. Kisi #
Kisi is a modern access control solution with straightforward but versatile deployment options, and a user-friendly dashboard. It’s appropriate for single or multi-entrance buildings, including all types of CRE, local government offices, fitness and wellness centers, healthcare facilities, and manufacturing spaces. Kisi thinks of smart, practical ways to overcome all obstacles.
For example, tenants in multi-office buildings with landlords can achieve continuous access with mobile unlocks. In addition, businesses or building owners that want to offer easy access to staff and guests can use badges in Apple Wallet, allowing users to unlock the door with a single tap.
Kisi also integrates with many other tools and proptech solutions, ranging from coworking management software to smart lockers and video security systems.
Reviews of Kisi
“We installed Kisi at our 2nd location and we couldn’t be happier. The system is extremely easy to set up and everyone in customer support is always so quick to respond. I was able to get my door set up by just following the very detailed instructions.”. Source: G2
“Kisi helps our laundromats stay protected via door access and they provide great support whenever you need it. The dashboard is easy to use and easy to integrate as well.” Source: G2
Kisi pricing
Contact Kisi to get a customized quote.
What’s next for proptech #
The increasing popularity and diversity of proptech is closely tied to the rapidly evolving concept of smart buildings, which use technology to monitor, control, and reinforce their systems. Smart buildings include sensors, automated equipment and programs, and IoT devices to collect data and enable smart, real-time decision-making.
Looking forward, the presence of smart buildings will continue to grow. A study by Juniper Research projects that the number of smart buildings in the world will likely rise from 45 million in 2022 to 115 million in 2026. As that happens, you’ll likely see not only more CRE professionals using proptech but also advances in existing solutions that take advantage of technologies like extended reality, AI, and machine learning.
Embrace the possibilities with proptech and Kisi #
The primary goal of proptech is to make your life easier. That might mean helping you decide whether a CRE purchase is wise or improving your buildings to attract more tenants.
No matter the size or purpose of the commercial property you own or operate, access control is a crucial component of your CRE journey. It makes buildings more safe, secure, and attractive to tenants, while operators enjoy streamlined building access management. With an easy-to-deploy and reliable platform, Kisi connects CRE professionals and their tenants with physical spaces in a new, more engaging way.
Reach out to schedule a demo or speak to a Kisi expert about developing a tailored solution for your space.
Bernhard Mehl
Bernhard is the co-founder and CEO of Kisi. His philosophy, "security is awesome," is contagious among tech-enabled companies.
