In commercial real estate (CRE), effective property management hinges on the seamless integration of various processes. As the industry evolves, the adoption of property technology (proptech) becomes essential in addressing key challenges. During the Building Engines Connect conference, Kyle Maikath, Senior Director of Direct Sales, Building Engines, highlighted four critical areas:  

1. Equipment management 
2. Tenant compliance 
3. Risk management 
4. Vendor management (particularly in triple net properties)  

So, if you’ve ever asked yourself, “What is proptech doing to transform CRE property management?” this blog is for you. You’ll learn the ways proptech solutions can enhance operational efficiency at CRE properties. 

1. Equipment management 

One of the persistent challenges in property management is the lack of visibility into the condition of building equipment. According to Maikath, this “creates really large challenges around budgeting and forecasting capital expenditure.” The absence of real-time data on equipment health can lead to unexpected breakdowns and costly repairs. Implementing advanced equipment inventory systems can provide managers with the necessary insights to plan and allocate resources effectively. 

How to extend equipment lifespan in CRE properties

Maintaining the longevity of costly equipment like HVAC systems is crucial. Here’s how to extend equipment lifespan in CRE properties with technology.

2. Tenant compliance 

Another concern is ensuring that tenants adhere to their lease obligations. Maikath rightly questioned, “How do you know if the tenants occupying these buildings are doing what they’re supposed to do?” Without proper monitoring, tenant compliance can become a gray area, leaving property managers in the dark. Proptech tools can offer a solution by automating compliance checks and providing streamlined communication channels between landlords and tenants. 

3. Risk management 

Risk management is a critical component of property management, yet it’s riddled with challenges. “It’s tough to mitigate risk at all the buildings,” Maikath noted, especially with a lack of personnel to manage the process. Proptech can aid in “creating protocols and processes to document that problems exist.” By leveraging technology to perform insurance inspections, routine rounds, and incident tracking, property managers can proactively manage risks. These efforts can also empower customers to negotiate favorable insurance terms by demonstrating diminished risk levels. 

Streamlined property management: A blueprint for success

Let’s dive into how these two elements – standardized building operations and proptech innovations – can work together to revolutionize your property management.

4. Vendor management 

Efficient vendor management is crucial to maintaining service quality and cost control. Proptech enables streamlined bid management, contract handling, purchase order creation, work orders, and accounting integration. By automating these processes, property managers can save time and improve accuracy. 

What is proptech’s role in the future of CRE? 

Proptech offers transformative potential in addressing the multifaceted challenges of vendor and risk management in commercial real estate. By adopting advanced technologies, property managers can enhance visibility, streamline operations, mitigate risks, and improve tenant relations. As the industry continues to evolve, embracing these tools will be paramount to maintaining competitive advantage and achieving operational excellence. 

Learn more about Building Engines’ advanced technology solutions and how they can help improve your property management.