Why PropTech may be about to boost your commercial property investment

Commercial Property Investment

Housing Minister Esther McVey has announced plans to release data held by local bodies to UK PropTech firms, bringing about "a digital revolution in the property sector. Because the move involves local authorities and regulatory bodies releasing data to the marketplace, this could represent a big opportunity for commercial property investment.

The impact of PropTech

Technology has had a major impact on commercial property, most notably on the high street and in warehousing, where online retailers have completely changed the nature of selling and storing consumer goods. But technology has had a more directly beneficial impact on commercial landlords too.

PropTech, sometimes referred to as 'built world technology', is making available more and more information of considerable value to commercial landlords, investors and developers. The industry has seen the advent of Automated Valuation Models (AVMs), the use of drones for improved surveying and, particularly, greater access than ever before to property data. A recent British Property Federation report notes that these digital customer service tools and technological advancements are not only helping people make smart commercial property investments but helping to keep them profitable, too. 

The latest developments

These new plans from the Ministry of Housing, Communities & Local Government involve two main measures. Firstly, to open up Compulsory Purchase Order (CPO) data and enable PropTechs to obtain things like energy performance certificates and the square footage information of properties. Previously, to access EPC commercial property landlords would have had to make formal requests and go through layers of bureaucracy, but immediate online access would make commercial property investment a much simpler process. The second part of the plan is to introduce a national index of all brownfield data. This would make it much easier for commercial property investors to identify new development opportunities. The Government has also set up an expert advisory council, so we can expect more new ideas in the future.  

Other advances

Other technological developments are proving invaluable in helping commercial landlords protect and maintain their property investment. Automated invoicing services, for example, are a great tool for ensuring rent payments are made on time. Meanwhile, in our own sector, big-data search technology is helping us to trace absconded debtors, including tenants in rent arrears.

For more information about how we can use technology to help you recoup rent arrears, or for advice on handling problem tenants, contact Dukes Bailiffs today.