Blockchain is the next big thing in the commercial real estate. Blockchain based smart contracts are transforming commercial real estate. With the help of blockchain technology people are able to advance leasing. It also helps to easily carry out buy and sale transactions in commercial real estate. The real estate industry is all about record keeping, keeping track of transactions and transfer of funds from one party to another. Even the top-notch companies that operates with the highest levels of efficiency in these transactions are prone to errors, because the process is highly complicated and demands lots of involvement from companies.
Commercial real estate challenges involved in leasing
For the clients, doing research on previous property transactions is tiring process. And often, they need to obtain the services of a lawyer to make the process smooth. There is no central point of reference in the real estate market where all clients can conduct their research on property transfers before making a final purchase. Its difficult for those who are selling or leasing out their properties,to keep up with client’s details and payments, because its intricate and also requires a lot of work in the commercial real estate market.
Blockchain to advance leasing in commercial real estate
Blockchain development system will empower for systematic and organised record keeping. Also, one can easily access and quickly go through all the information required for owners and clients. Since everyone in the system have access to the records, accountability will also be guaranteed.
Blockchain technology keeps information well secured; this will increase the trust in the system because the records will be genuine . Without this, the due diligence process will continue to prove dull for new buyers, thereby slowing down real estate processes.
Commercial real estate (CRE) industry has lately adapted blockchain technology.
CRE executives have realized that blockchain-based smart contracts can play a huge role in their industry. Blockchain technology can reconstruct core CRE operations such as property deals like buying, selling, sales, leasing, financing and management transactions.
Where do real estate and blockchain actually intersect?
You can best evaluate this answer through the eyes of a certain applications within the real-estate industry. Blockchain technology within has benefitted commercial real estate by improving database management and information management. Also, it has improved efficiency for multiple listing services (MLS) and smart contract (leasing). Blockchain technology has created many opportunities while reducing some of the challenges.
Blockchain for real estate leasing and purchase and sale transactions
Shared databases are important for leasing and purchase and sale transactions. One important example is a multiple listing service, which gathers property-level data and information from private databases of brokers and agents. It also improves property search process.
Multiples bodies can modify database
Negotiating and managing real estate properties involves multiple entities, such as investors, tenants, owners, lenders, operators and service providers and alter number of information.
Lack of trust among organization
Is difficult to develop trust among participants in leasing and purchase and sale transactions because they are new to each other and might even face data integrity concerns. Although, with the help of blockchain technology identity risk can be reduced by making digital identities, and more transparent record keeping system for real estate titles and financing.
Opportunity for disintermediation
Trusted intermediaries through blockchain can be disintermediated, due to heightened security and transparency in title management, and auto confirmation by government land registries.
Many real estate transactions have conditional clauses and can be executed through smart contracts. For instance, the conclusion of a purchase-sale transaction could be dependent on loan approvals or title clearances. The entire process of property title management can be made transparent and relatively cheaper with blockchain in real estate. In all, a blockchain development company can ease leasing and subsequent property and cash flow management
Blockchain technology will make leasing much easier for real estate companies. Real estate agent is the one who carries out all the finance related activities, he i involved in buying and selling of properties. If the company is dealing with many clients the process becomes complicated and elaborated, also it involves lots of company’s engagement and efforts.
With the help of blockchain platform, clients can make any kind of payments directly made to the owner, eliminating the need for ascertaining payment. This would make the process effortless, efficient and systematic. It would also be easy to keep track of clients on what date and time they have made the payment. Blockchain in construction and real estate industry can handle any type of debt with ease.