4 Ways Blockchain Technology Can Transform Commercial Property Search
CRE property search is not set up for speed and efficiency
Today, CRE search occurs almost entirely via an MLS or property portal.
Using these shared databases, brokers list available properties for prospective clients to view. However, the current state of the MLS landscape has several significant flaws:
- there is no process to verify data that brokers list for accuracy;
- there are no established and standardized guidelines for data in the industry;
- the information is often dated and the property search is fractured which makes the search process time-consuming and does not facilitate quick and educated decision-making.
Unsurprisingly, the data found in an MLS or property portal is increasingly not perceived as credible. In fact, the real estate industry is notorious for the inaccurate and (often) exaggerated property-related information. This means that even brokers who are committed to providing high-quality data are facing problems with trust.
Another problem intertwined with the trust issue we mentioned above are the endless opportunities for data modification in an existing MLS or shared database.
In fact, each party in a real estate transaction — and there are a great many — can change the data without the other parties knowing about any such modification.
At the same time, verifying property data, conducting due diligence checks, obtaining ownership information and property history is a tedious process due to the large number of parties involved.
What will blockchain change?
Smart and efficient property search via a blockchain MLS
A blockchain MLS platform will be a truly shared database where information is accurate and up-to-date. Blocks of data about brokers, landlords, tenants, property managers, credit and repair history, lease rates, etc. cannot be changed once they are added to the blockchain making it the most secure technology known today.
Real-time and set up for efficiency
At the same time, near real-time updates will ensure that property information is accurate and relevant at all times. As a result, concise property information stored on the blockchain will be easily accessible for prospective clients to view, thus taking minutes, not months, to find suitable properties and make investment choices.
To further improve the property search experience, a blockchain-powered CRE platform can provide integration with VR (Virtual Reality) solutions. Visualizing commercial properties is currently a big issue but it doesn’t have to be that way. Brokers will be able to publish a VR overview of their listings to th platform. VR would picture properties with exciting accuracy while saving clients lots of time and travel expenses.
Global reach and opportunities for investors