The commercial property landscape in Australia is undergoing a transformation. Rapid advancements in technology are impacting property valuations and the metrics used to determine commercial property worth. As technology evolves, valuation approaches must adapt to account for emerging trends.
The Rise of Prop-tech
One of the biggest factors influencing commercial valuations is the growth of prop-tech, or property technology. Prop-tech refers to software, analytics, platforms, and other technological tools applied to the property sector. These innovations are streamlining how properties are designed, valued, bought and sold.
Prop-tech tools such as building information modelling (BIM), augmented reality (AR), and virtual reality (VR) are being used to create digital twins of buildings. These 3D virtual models provide far more data about a property’s specifications and can lead to more accurate valuations. Big data analytics leveraging AI and machine learning are also being used to uncover insights from property data to optimise valuations.
Automation and Remote Working
Advances in automation and increased remote working are also impacting property valuations. With more tasks being automated, commercial tenants need less space for employees and administrative functions. Distributed workforces working from home also reduce the need for office space.
These trends lower demand for traditional office setups, which can negatively impact valuations. However, increased flexibility and lower overheads provided by automated processes can make properties more appealing to tenants. Valuations must weigh these pros and cons.
Sustainability is becoming a priority for commercial tenants, so green building certifications and energy efficiency metrics are influencing valuations. Technologies like smart lighting, HVAC, and energy monitoring play a key role in reducing a building’s environmental impact.
Valuers are increasingly accounting for sustainability features and certifications like Green Star and NABERS ratings when assessing a property’s value. More weight is placed on futureproofing through eco-friendly design, construction and operation.
The Need for Tech-Savvy Valuers
Technology is making the valuation process faster while providing more granular insights. However, valuers must have the necessary skills to leverage these tech tools. Training in platforms like spreadsheet tools, analytics software, BIM tools and prop-tech solutions is needed.
Experience with smart buildings and sustainability metrics will also be critical for accurate valuation. As technology continues advancing, valuers must evolve their competencies to remain effective.
The commercial property valuation landscape is undergoing rapid transformation due to emerging technologies. Valuers must stay abreast of prop-tech innovations, automation, remote working patterns, and sustainability metrics to provide insightful valuations. Adopting tech-enabled approaches will be key for valuation professionals in the years ahead.