Cloud Technology and Its Role in Commercial Real Estate 

Introduction

Commercial Real Estate (CRE), like many other industries, has faced a myriad of changes in the last few years, brought on by the acceleration of remote work, increased demands for sustainable frameworks and ESG reporting, and emerging technologies such as artificial intelligence (AI).

Cloud technology has been among the most influential drivers of transformation in CRE. With global public cloud services spending projected to hit $1.35 trillion by 2027, it is no wonder that the cloud is at the forefront of many CRE leaders’ minds.

After two years of reduced spending and revenues, many investors and owners are tentatively hopeful that 2025 will be a year of recovery for the CRE industry. Cloud technology may be instrumental in catalyzing this recovery.

In this article, we explore how the cloud is driving positive change in commercial real estate.

How Cloud Technology is Transforming CRE

Data-Driven Decision Making

Data has become a powerful asset in the CRE sector. While real estate companies often have access to a large pool of customer and market data, the volume of this data makes it hard to capitalize on.

Cloud-based platforms offer centralized storage solutions, allowing teams to collect, process, and analyze large datasets in real-time. This results in faster, data-driven decision-making.

For example, property managers can monitor real-time occupancy rates and tenant feedback using cloud-based analytics tools, allowing them to adjust rents or implement property improvements as needed.

Furthermore, investors can leverage comprehensive data insights that indicate market trends and predict future demand for certain property types or locations.

Enhanced Collaboration and Remote Work

With cloud technology, CRE professionals can access their data, such as property deeds, sales contracts, customer data, purchase agreements and legal forms, from any location, thus increasing productivity. Such access has become even more crucial in our post-pandemic world, where remote work is increasingly common.

However, cloud technology doesn’t just enable employees to work from home – it also allows remote management of properties. With cloud-powered IoT (Internet of Things) technology, building managers can monitor security systems, energy usage, and other key metrics from various remote locations. This ability to manage properties remotely improves operational efficiency, reduces costs, and allows for quicker responses to tenant needs.

Lastly, cloud-based project management tools enable CRE professionals to easily track progress, assign tasks, and share documents, thus enabling a level of flexibility previously unavailable in the CRE industry.

Improved Marketing

A major benefit of cloud computing in commercial real estate is its usefulness in marketing. Cloud technology can scrape data via various websites and portals, and real estate brokers can utilize real-time data to monitor deals and generate referrals or leads.

Cloud computing can also help to create more targeted campaigns, engage with leads via automated email and SMS campaigns, and analyze customer behavior.

Finally, instead of physical property tours, brokers and property managers can offer 3D virtual tours hosted on cloud platforms, allowing prospective tenants to view properties remotely. This both cuts time and widens the pool of potential tenants.

Streamlined Leasing Processes

Leasing in commercial real estate has historically been a complex, paper-heavy process. However, cloud technology simplifies this by digitizing lease management.

Cloud-based platforms and solutions:

• Help businesses securely store and access lease data remotely.
• Automate repetitive tasks such as sending rent reminders and processing maintenance requests.
• Enable real-time collaboration among teams and stakeholders, making sure that everyone can access the latest information.
• Enable property managers to manage leasing tasks such as rent collection, document signing, and tracking in one place.
• Allow contracts to be signed and shared quickly vis-a-vis digital signatures.

Data Security and Compliance

Commercial real estate databases include a lot of personal information, such as credit scores, customer profiles, social security numbers, and government IDs.

Customers want their CRE transactions to be protected, and large cloud infrastructure providers provide a level of security that most CRE companies cannot compete with.

Think large teams and the most advanced security technologies, as well as controls and procedures to protect information 24/7 on their data centers and servers. Cloud security also supports regulatory compliance with standards like GDPR and SOC 2 and creates authentication rules for devices and users.

Additionally, utilizing a cloud solution also protects against losing data to man-made or natural disasters. The cloud allows for easy data backups, providing an audit trail and reducing the risk of data loss. Businesses that leverage the cloud have no need to build and maintain remote disaster recovery sites, which can be time consuming, expensive, and labor-intensive.

Sustainable Smart Buildings

Sustainability is becoming a priority in commercial real estate, driven by both regulatory requirements and tenant demands for greener properties.

Cloud technology plays a crucial role in the development of smart buildings that use IoT devices to monitor and reduce energy consumption. The platforms collect data from these devices and provide insights that help property managers optimize resource usage.

For example, smart lighting can adjust automatically based on occupancy, and HVAC systems can optimize their performance using real-time weather data.

Cloud-based analytics also empower property managers to track their buildings’ environmental performance and make improvements to meet sustainability goals.

Open Ecosystem Creation

The cloud is an ideal platform for hosting software tools that increase productivity for agents and brokers.

One practical approach is to create a commercial real estate app store featuring a range of applications, such as CRM tools, lead generation software, open house apps, and other productivity tools – all accessible through the cloud.

This setup fosters an open ecosystem where agents and brokers can choose from a variety of software options, including apps developed in-house or from third-party providers. The cloud makes it easy for them to pick the tools that best suit their needs, offering both flexibility and a personalized approach to support buying, selling, and more.

Conclusion

As commercial real estate continues to modernize, cloud technology has become a cornerstone of the industry’s digital transformation. From improving data accessibility and collaboration to enabling advanced analytics and supporting sustainability, the cloud offers numerous benefits that streamline operations, enhance tenant experiences, and power data-driven decisions.

Embracing cloud technology allows CRE firms to stay agile, adaptable, and resilient in a rapidly changing market. As the industry moves toward a more connected and technology-driven future, cloud solutions will remain a key factor in driving efficiency, innovation, and growth.

By investing in cloud adoption, commercial real estate firms can unlock new opportunities, improve service delivery, and set the stage for long-term success in a digital world.

Silverskills is a reputed company that helps businesses migrate to the cloud. Our cloud services include strategy, cloud-native development, integration and migration, cloud data and analytics, and cloud security. Contact us now so your organization can become future-ready!