There has been a lot of buzz about the use of drones to capture aerial photos and a bird’s eye view of properties. Yet drones are just one of the high-tech tools that brokers use these days to market real estate assets for sale or lease.
Although the Federal Aviation Administration (FAA) has taken steps to crack down on drones, the use of such unmanned aerial vehicles to shoot photos has become increasingly popular among both commercial brokers and residential realtors. For example, drones were used to capture 360 degree panoramic views from the upper floors of the new 54-story 181 Fremont St. building in San Francisco. The office and condo tower is slated for completion in early 2016.
The big appeal of drones is that they capture unique views of properties that can be used in marketing materials and video tours.
“The more important piece is that video is becoming one of the mainstream ways of communicating both from a leasing and a sales perspective,” says John McCarthy, executive director of brokerage services at Cushman & Wakefield/Northmarq in Minneapolis.
Virtually every listing assignment that the firm has now includes a property video. In fact, McCarthy is convinced that it was the video that made the difference in finding a buyer for a 30,000-sq.-ft. office property he marketed recently about 60 miles northwest of Minneapolis. He teamed up with a local broker and they used a video to market the property to potential buyers.
“With video, you can tell a little bit more of the story than just a flyer,” says McCarthy. “I never even had to go to the property.”
New tools
E-commerce has changed how people make purchases and also how they make buying decisions with more online research. The commercial real estate industry is taking note of that shift and trying to leverage technology to capture the interest of potential tenants and buyers.
“We’re certainly seeing more technology across the board whether it be interactive websites, video tours, 3D animation and interactive design elements where you can layout spaces in different ways online,” says Ben Breslau, managing director of Americas research at JLL in Boston. JLL is using new visualization tools that pull in data to create 3D models to allow clients to “fly through” markets and assets, notes Breslau. The “fly throughs” combine aerial photos and 3D images to provide a strong visual, as well as include analytics that provide detailed information on a property or market.
In New York City, Newmark Grubb Knight Frank is working with graphics firms to create 3D computerized renderings and virtual walk-throughs to help pre-market buildings that are being renovated or developed. These 3D models help to illustrate the vision for the space. So instead of having to wait to show a prospective tenant what the layout of the space will look like complete with décor such as new windows, flooring and arched ceilings, it can all be graphically designed on a 3D rendering to create a virtual walk through of the space.
For example, Newmark Grubb used a virtual 3D model to lease 245 and 249 West 17th Street in the Chelsea area of Manhattan. The complex was vacated to make way for a full renovation that included a complete demo of the interior. The brokers hired a graphic designer to create a visual of what the finished project would look like.
“It was a real game changer,” says David Falk, president of the New York tri-state region for Newmark Grubb in New York City. At the time, the building did not show well. Construction was underway and much of the existing interior had been gutted. The 3D modeling helped to provide a very realistic and accurate representation of what the space would look like when it was completed, he adds.
Newmark Grubb was able to use that 3D computerized model to show prospective tenants a very life-like model of what the space would look like when it was occupied with the renovations complete, as well as furnishings, people and even plants in place. NGKF ended up leasing the bulk of the property, totaling 214,765 sq. ft., to Twitter. The new tenant was able to commit to the space even during construction, because Twitter’s executives were able to visualize the new space, says Falk.
“There is a wave of technology that is enabling really exciting and interesting things in our industry in terms of how our clients interact and how we can provide services,” says Breslau. Yet it is not a “one-size-fits-all” solution when it comes to technology. “There is a very broad [range] of decision makers out there within real estate, some of whom are very cutting edge and tech savvy and others who are still fairly traditional,” he adds.
In addition, the cost of using the technology can be prohibitive in some cases. Most firms are very focused on trying to figure out what the return on investment is and how it can impact the success of the property and the client.
“Some of these technologies have been around for a while, but they are becoming much easier to access and leverage than they were before,” says Breslau. That being said, the technology has to do more than add flash to a presentation. It needs to deliver some type of competitive advantage or accelerated performance, he adds.
