The WSJ reported that South Burlington, Vermont launched a test of blockchain technology for their city’s property records. This speaks volumes - blockchain is changing the game, and municipalities are starting to harness that it. Essential, blockchain is a digital ledger technology that records transactions chronologically and publically. Blockchain does not need to be run by bitcoin or another cryptocurrency -- the US $ can be its proxy.
This is just one of the ways technology is making inroads in the commercial real estate space. The Massachusetts Institute for Technology’s Center for Real Estate is tracking startups in this industry and now has about 2,000 vendors in its proprietary database. The applications are in AI, drones, and machine learning to determine which loans in a CMBS will go south. Many apps seeking to introduce the sharing business model to all categories in CRE.
Real estate is poised to experience a distinctive wave of disruption, just as other industries have - think Uber, Airbnb. Are you harnessing technology in your business. If not, you should be.