Successful commercial real estate developers are visionaries with a plan who share the same ambitious mindset: they want to sell—or lease—more properties faster and at a higher profit than they ever have before. To increase the demand for properties, developers need to design sales and marketing strategies that implement the use of VR technology to best respond to the needs of their primary customers.
Virtual reality has significant implications for infrastructure design, as it helps to ensure complete accuracy early on—saving developers both time and money.
Because VR allows developers to identify design issues sooner rather than later, it helps them to reduce the number of errors found in the design phase of a project—saving developers from facing some of the unnecessary capital costs associated with construction. We previously quoted the Denver-based CRE developer Daniel Nichols stating that “people have a hard time being able to visualize what either the vacant space will look like or, in our case, the new building will look like when it’s fitted out for them specifically. Even though architects do an incredible job of drawing and 3D modeling a space, it’s nothing like immersing yourself in the real thing.” Catching these issues early helps developers to streamline the construction process for builders, eliminating the potential need for unplanned construction orders that 1) delay the time of construction and 2) cost more money.
Virtual reality can help developers sell their vision to get an anchor tenant on board early in the leasing cycle.
An anchor tenant— “sometimes referred to as a prime tenant, a draw tenant, or a key tenant—is the leading, featured, big-name business that rents office space in any given development, complex, or neighborhood.”
Developers know that often, banks won’t lend on projects until there is some pre-leasing hurdle hit.
To this point, Nichols further stated that “VR can make a building that’s not yet built into a reality for a prospective tenant making it easier for them to sign on early in the process of development.” If every developer shares the same goal— to sell and lease properties as fast as possible—VR should be utilized by developers across the board, no matter what the size or the scope of the project may be.
VR increases overall ROI for developers and helps to reduce vacancy.
Commercial real estate VR is a “unique form of digital marketing for real estate [that] works effectively and enables property developers to receive a better return on their investment.” Due to the immersive nature of VR tours, buyers and renters can visualize the potential of a property as if they are in it without needing to visit it at all. VentureBeat quoted Elizabeth Gibson, CCO at ezLandlordForms, for saying, “VR tours are a huge time-saver for landlords and potential tenants, especially when the would-be tenant lives across the country or abroad. Most investment property managers are more than happy to dispense with traditional in-person tours. They are already juggling many tasks, and there’s nothing more disappointing than giving up an hour or two to show a unit, only to have a no-show.” Additionally, due to increased productivity levels, consumer-level technologies like VR help real estate professionals to not only establish a higher ROI but to help them expedite the process of closing deals altogether—and as we all know, time is money.
By: Alexa Davis—Content Strategy @ BlockVue