When you hear the word “blockchain” you most likely think of the word “cryptocurrency” afterward. While blockchain and cryptocurrency do go hand-in-hand, the applications of blockchain today have transformed into something so much more. From land registries to personal identity and beyond, blockchain has matured and it’s here to stay. But, is the commercial real estate industry ready for the introduction of this new technology?
Blockchain technology is efficient, secure and extremely transparent. Because blockchain is used as a digital record to verify and maintain transactions, it only makes sense that the commercial real estate industry could benefit from this tech. Learn exactly how CRE should be adopting blockchain, and how it benefits the entire industry:
- Track Payments with Transparency: Payments involved in CRE properties need to be tracked and later monitored on a regular basis. Because of this, accounting, compliance and cash flow management is a priority for real estate companies. Because blockchain enhances transparency for all parties on things like lease terms and transactions, fewer errors occur and a more professional, trusting business practice is achieved.
- Cut Down on Administrative Work: Real estate leases can be upwards of 300 pages long. The entire process is slow, cumbersome and takes manual verification (like reviewing signatures) that has a wide margin for human errors. Blockchain can help streamline this process, as well as lessen the workload and reduce transaction time from months down to minutes.
- Experience Real-Time Data: The lack of real-time data in the commercial real estate industry causes inaccurate decision-making. With Blockchain, open and/or shared databases for all involved parties is a possibility, and both increases transparency as well as enhances data quality and real-time data retrieval.
In-Building Tech said it best: Blockchain is the next big disruptor in commercial real estate. Within this industry, transparency and accurate verification are key, and Blockchain is able to help on both fronts. While Blockchain scales and matures as a transformative tech, the commercial real estate industry should start considering the many benefits to its addition and implementation.