The Latest in Commercial Real Estate Technology Trends: Revolutionary Payment Solutions

One of the most exciting commercial real estate technology trends to emerge in recent years is the shift from manual payment processes to more efficient electronic payment solutions. This is useful not just when dealing with LPs and investors, but also on a grander scale when processing rent payments from a multitude of tenants.

According to a Deloitte survey, 56% of respondents stated that the pandemic exposed their CRE firm’s technological deficiencies. In fact, 61% of respondents even admitted that their firm’s technologies still relied on legacy systems, which were outdated and ineffective. This has prompted them to restructure their internal processes to adapt to modern technology.

Adopting new technology serves several purposes. It enables CRE firms to communicate more directly with investors, while also recording real-time data that can influence operational decisions and future strategic planning. New technology also allows GPs to more accurately and efficiently distribute payments, which has notoriously been one of commercial real estate’s most arduous and complex tasks.

It’s imperative that CRE firms keep up with the evolving landscape, and streamlining payment solutions is one commercial real estate technology trend that will have lasting effects. Let’s take a closer look at how modernizing payment systems can benefit your firm.

The Advantages of Modernizing Your CRE Payment System

More Efficient Accounting

Shifting from manual payment processes to digital ones makes for more efficient accounting because banking can be integrated right into the payment platform, enabling GPs to organize accounts and move money via ACH debit either to their assets or to their investors. Best of all, funds can earn a high-yield APY, generating more revenue while capital sits uncalled. LPs will certainly appreciate this extra source of revenue, especially since it doesn’t require any additional work on their end.

GPs can also automate distribution payments quickly and accurately, taking the guesswork out of one of commercial real estate’s most arduous tasks and freeing up time to look for future revenue-generating deals. Not only does this simplify complex tasks, but integrated CRE banking allows for greater transparency so that investors can identify and resolve potential problems early, further strengthening the relationship between GPs and LPs.

Accurate Reporting

This commercial real estate technology trend means more accurate performance reporting because GPs and their investors have greater access to payment histories, asset updates, and other important data. Enhance communication and create performance reports based on metrics like vacancy rate or property expenses. Document sharing also leads to more investor engagement while keeping sensitive information secure.

Prioritizing an investor portal will help your commercial real estate firm keep investors updated with important information, while also strengthening relationships between GPs and LPs. With the right investor portal, you can communicate quickly with your investors, via email, discussion forums, or even a live chat. Providing this centralized location for investors not only enables more organization and efficiency, but it improves investor satisfaction, which frees up your time so you can focus on your next transaction.

Optimizing Liquidity

Funds that stay in banking-embedded platforms stay liquid and accessible, ready to be either withdrawn or transferred should a new opportunity arise. Another important commercial real estate technology trend that aids in optimizing liquidity is using AI in your payment platform. AI can help make current payment processes more effective, but it can also identify opportunities for future growth. AI can help you predict future market trends by analyzing data, or optimize planning by identifying investment strategies.

For instance, some software allows GPs to evaluate and identify investors who are likely to invest in an asset, leading to more fundraising opportunities. AI can help streamline processes like data collection and analysis in order to assist with predicting future CRE opportunities, saving GPs time that could be spent enhancing investor relationships instead.

Go Beyond Paper Payments with Covercy

CRE firms process payments, collect rent, fundraise for capital, and finance property renovations each month, and that’s a lot of complex processes to constantly monitor. Electronic payments are here to stay, so finding a platform that can make payment solutions more efficient and accurate is key. That’s where Covercy comes in.

Covercy is the first real estate syndication platform that integrates banking with investment management. With added features like fundraising with capital calls, investment database management, and more, Covercy can help you master the latest commercial real estate technology trends and streamline operations for your firm.

See how our platform can modernize your payment system firsthand. Book a demo today.