Augmented Reality has become a robust tool for attracting and retaining tenants as the real estate industry evolves by providing an immersive and interactive experience. Market Research Future has projected that the global commercial property market will grow at a CAGR of 9.3% from 2021 to 2028. With such a vast market, property owners and managers seek innovative ways to improve tenant satisfaction and remain competitive.
AR technology has the potential to transform how tenants interact with commercial properties by offering virtual property tours, 3D floors plans, and interactive digital displays. With AR, tenants can visualize and experience commercial properties in previously impossible ways, providing a unique and engaging experience that sets properties apart from their competitors. This article will explore how AR changes the game in commercial real estate and how property owners and managers can leverage AR technology to boost tenant satisfaction and drive business success.
Benefits of AR For Commercial Properties
- Improved Communication with Tenants: AR empowers property managers to communicate more effectively with tenants by providing interactive tools to visualize spaces, tour units, and better understand what’s available. It helps in the creation of stronger relationships and enhances tenant retention rates.
- Enhanced Property Visualization: With AR, highly realistic, 3D visualizations of commercial properties can be created that can be explored from all angles. It can assist potential tenants in gaining a better sense of the space before they commit, leading to more informed decision-making and improved outcomes for all parties involved.
- Personalized Experiences: AR can be used to create customized experiences for tenants, such as interactive tours highlighting specific amenities or services that might be of interest. It can foster a stronger sense of community and engagement among tenants, leading to higher satisfaction rates and positive word-of-mouth recommendations.
- Interactive Amenities and Services: AR can create interactive experiences that allow tenants to explore and engage with different amenities and services within a commercial property. It can include everything from fitness centers and swimming pools to conference rooms and shared workspaces, providing tenants with a more comprehensive understanding of what’s available.
- Streamlined Maintenance and Support: AR can streamline commercial properties’ maintenance and support processes. For example, property managers can use AR to quickly identify maintenance issues and provide detailed instructions to maintenance staff, reducing downtime and improving overall efficiency. Similarly, tenants can use AR to report problems rapidly and receive personalized support from property management teams, leading to faster resolution times and higher satisfaction rates.
Examples of AR in Commercial Properties
- Virtual Tours and Property Showcases: Commercial real estate agents and developers utilize augmented reality (AR) technology to provide virtual tours, and property showcases to potential buyers and tenants. By integrating AR, buyers, and tenants can explore properties and visualize how they might look with different layouts, furniture, and design elements. This innovative technology offers a more engaging way for buyers and tenants to make informed investment decisions.
- Customized Tenant Information and Services: Commercial property managers use AR to provide tenants with customized information and services. For example, tenants can use AR to scan a QR code and access information about the building’s amenities, such as gym hours, parking locations, and events. AR can also provide customized messages and alerts to tenants, such as weather updates, building announcements, and emergency notifications.
- AR-Powered Wayfinding and Navigation: Large commercial properties, such as shopping malls, airports, and office buildings, are using AR to provide wayfinding and navigation services to visitors. With AR, visitors can use smartphones to navigate complex structures, find specific locations, and get real-time directions. Visitors can easily access information about nearby restaurants, shops, and other points of interest with just one click.
- Gamification Of Building Amenities: To encourage tenants to use amenities like gyms, pools, and lounges more frequently, commercial property managers are gamifying building amenities with AR. Tenants can participate in virtual challenges and games, earn rewards and points, and compete with other tenants. This technology also provides data to property managers about how frequently amenities are being used, allowing them to make data-driven decisions about building operations and maintenance.
- AR-Enabled Maintenance and Support: AR provides maintenance and support services to tenants. By scanning an object or equipment, such as a light bulb or HVAC unit, tenants can access information about maintaining and troubleshooting. AR can also provide remote support to tenants, allowing them to connect with maintenance personnel and receive real-time assistance.
Best Practices for Implementing AR in Commercial Properties
- Consider Tenant Preferences and Needs: The first step in implementing AR in commercial properties is to understand the preferences and needs of the tenants. By understanding their requirements, you can create AR experiences that meet their needs, such as providing virtual tours, interactive maps, or digital signage. You can gather this information with the help of surveys, focus groups, or discussions with tenants.
- Choose the Right AR Technology and Software: Various AR technologies and software are available in the market, each with unique features and capabilities. For a successful implementation of AR in commercial property, choosing the right technology and software that aligns with your property’s objectives and requirements is essential. Factors to consider when selecting AR technology include compatibility with existing systems, scalability, and ease of integration.
- Create User-Friendly and Intuitive Interfaces: AR experiences should be easy to use and navigate for tenants and staff. The interfaces should be designed to provide clear and concise information, with minimal effort required from the user. Using simple and intuitive navigation can also help reduce training costs and improve user adoption.
- Provide Adequate Support and Training for Tenants and Staff: As a property owner, you want to ensure that your tenants and staff feel confident and comfortable using the latest AR technology. Providing adequate support and training is crucial to help them navigate this new experience seamlessly. From user manuals to training sessions and technical support, you can equip them with the knowledge and tools they need to succeed.
- Ensure Privacy and Security Measures are in Place: With AR technology, you will be gathering user location and preferences, which means you must have strict policies to protect their sensitive information. By implementing data protection policies, secure data storage, and encryption technology, you can ensure your tenants and staff feel safe and secure while using this innovative technology.
How Willis Tower Successfully Integrated AR In Their Property- A Case Study
Located in the Loop community of Chicago, Illinois, the Willis Tower stands at 1,451 feet (442.3 m) and has 110 stories. The property management company, EQ Office, collaborated with a tech startup to create an AR app that allows tenants to navigate the building, book conference rooms, and order food. The app also includes virtual art and historical exhibits, increasing tenant satisfaction and retention. The AR app also improved operational efficiency by reducing the workload of building staff and increasing revenue growth by providing a platform for businesses to advertise their services within the building. Additionally, the app enhanced marketing and brand awareness for the Willis Tower as a tech-savvy and innovative property, attracting new tenants and investors.
By offering interactive and immersive experiences, AR can increase tenant satisfaction. This technology lets tenants visualize and customize their space, access information on building amenities and services, and connect with other tenants. Implementing AR in commercial properties can set them apart from the competition and enhance the overall tenant experience. We encourage property owners and managers to embrace the potential of AR technology and leverage it to improve tenant satisfaction and retention. The bright future of real estate is here, and it’s augmented