VR & Real Estate: Part 2
Exploring the current functionality and future potentiality of VR/AR technologies in commercial real estate.
This is part 2 of a 3 part series. Part 1 can be read here. Part 3 is coming next week. Follow us if you want to read more.
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As part one of this series focused primarily on the homebuyers and the residential home buying process, it should be understood that as we dive into commercial real estate, there are currently contesting points on how accessible VR and AR technologies are in luxury/commercial spaces versus residential spaces.
Some sources say commercial real estate has been slower to adopt VR/AR overall, which is odd when you consider the value of the average commercial real estate project and how VR and AR solutions could actually be more affordable for commercial purposes. This slow adoption is chalked up to the sheer size of these large commercial real estate brokerages and firms, as it is much more difficult to turn an ocean liner than a speedboat.
Other sources say that commercial real estate currently dominates the VR/AR space, pointing to the obvious fact that you’re more likely to have a VR headset placed on your head by a realtor showing you a bajillion dollar apartment in Manhattan as opposed to a 200K fix and flip in Buffalo.
Regardless, there is room for more for VR and AR across the board. Commercial real estate firms specifically have been losing potential revenue from their much more technologically inclined clients who are in search of a more convenient way to tour and sign on to spaces that fit their specifications.
Agents and brokers alike who work in commercial real estate historically have had to perfect the art of selling would-be tenants on what could be, and walking around old office spaces and picturing the new and luxurious though becomes a lot easier with a VR headset.
By simply wearing a headset and engaging with the visuals, potential tenants can look at a realistic and detailed 3D modelling of what the ideal finished space will look like.
Office leasing and office layouts become much more dynamic and interactive with the use of VR and AR tech. VR 360 renderings open the door for CEOs and companies alike to tour and experience office spaces before they are even begun to be built and remodelled.
VR 360 technology makes things like company tours both viable and convenient, allowing multiple people at a time to weigh in and engage with the environment. Whoever wants to participate puts on a headset and is instantly able to experience an interactive virtual tour from the comfort of their own chair.
As you can see from the image above, Real Estate is slated to make a sizeable dent for VR/AR technologies, taking up 2.6bn of the total market by 2025 (as per the good folks at Goldman Sachs).
For the time being, 360-degree VR property tours will largely remain in the luxury and commercial real estate space due to costs and implementation. With entry level 360 cameras being released more frequently at lower price points, widespread usage is becoming a more feasible reality, and the ability to view hundreds of properties from an office in a day comes at a small cost and a few minutes of set up.
This is Part 2 of 3 pieces exploring VR and it’s current place in real estate technology. Part 1 can be read here. Part 3 is coming next week. Follow us if you want to read more.
