NYC’s Proptech Revolution: Benefits & Precautions

The dawn of new and intuitive technologies has led some of NYC’s most vital industries into a digital transformation in recent years (i.e., technological advancements in construction and finance— coined “Contech” and “Fintech,” respectively). Now, as a new industry assumes center stage, NYC’s real estate megalopolis is being taken by storm.

That’s right, we’re talking about “PropTech.”

An increasingly popular buzzword amongst real estate and construction professionals, “proptech” (short for property technology) describes the widespread digital transformation of the real estate industry— and property owners, construction workers, and building occupants alike are all benefitting. In fact, just in the past few years alone, proptech has advanced the real estate and construction industries in myriad ways, including:

  • Improved communication throughout the construction process
  • Better-controlled building access
  • Increased sustainability and efficiency for real estate assets
  • Decreased energy consumption
  • The creation of thousands of profitable jobs
  • Improved quality of life for building occupants

For the purpose of this blog post, we’re going to take a look at three main advantages of proptech as it relates to construction and real estate in NYC:

The Benefits of Proptech in NYC Construction & Real Estate

— 01 — Proptech makes construction communication more efficient

The same property technologies that facilitate communication between landlords and tenants, buyers and sellers, and customers and estate agents prove beneficial for property owners, stakeholders, and construction companies during various phases of construction. Task management tools facilitate communication between property managers and sub-contractors. BIM allows contractors and facility managers alike to view final “as built” models for a structure—making it easier to complete upgrades, repairs, or maintenance on a building’s pipes, wiring, HVAC systems, and more.

— 02 — Proptech increases sustainability & efficiency for real estate assets

Proptech’s digitized infrastructure serves as a viable solution for meeting sustainability, climate change, and public health goals. Furthermore, it comes with the potential to upgrade the city’s building stock and lower greenhouse gases while simultaneously creating thousands of profitable jobs.

— 03 — Improved quality of life for building occupants.

Building occupants reap the benefits of evolving property technologies as outdated building management systems (BMS) are replaced by more efficient and cost-effective models that grant tenants the ability to monitor their personal energy usage.

Check out this Commercial Observer article for more on the many benefits of proptech in NYC.

The Downside of Proptech

Perhaps the one downside to proptech is its vulnerability to cyber breaches and attacks. Buildings outfitted with digitally enabled sensors are susceptible to malicious exploitation by a motivated party. The cybersecurity of digital data is a potential cause for concern that must be taken into account as property technologies continue to evolve.

Talisen & Proptech

Talisen aims to continually evaluate and recommend property technology tools to our clients. Some of the proptech companies we have evaluated include Brainlit, Healthway, and Litepan. Give them a visit and let us know what you think, we’d love to have a conversation!

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