Blockchain Technology and Commercial Real Estate in 2022 and Beyond

Aviva is the managing broker of The Warehouse Hotline and a real estate agent, owner, and investor in Denver, Colorado.

Blockchain technology is changing the landscape of the world and with it the future of commercial real estate. The capabilities of blockchain technology lend themselves very well to the needs of the real estate industry as a whole. Rather than being hounded by escrow companies and extensive paperwork, the blockchain allows transactions to be carried out quickly and securely.

Here are a few of the ways I think blockchain will definitely turn into commercial real estate in the coming years.

Instant Transactions

Blockchain technology eliminates the need for all parties to be physically present for real estate transactions. The inherent security needs of a commercial real estate transaction usually require frequent face-to-face meetings, which significantly slows down the process. Using a secure blockchain, investors can sign contracts, fill out paperwork and transfer funds from anywhere in the world. This will significantly speed up transactions and make acquiring real estate more attractive to frequent travelers.

Public transactions

Thanks to blockchain technology, transactions are public, allowing anyone in the commercial real estate industry to see what is being sold. This allows buyers and sellers to monitor industry trends and transactions. This was previously not possible with private real estate transactions. Not only can this help them make better decisions, but it also empowers newcomers to residential and commercial real estate to learn more about the industry.

Better security

The problem with online transactions has always been their susceptibility to cybercriminals and hacking. However, the blockchain can be incredibly impervious to hacking thanks to its decentralized technology. This means that commercial real estate transactions conducted on the blockchain are not as easily subject to data breaches or cyber fraud as digital transactions without blockchain.

No more third parties

Because blockchain companies run on a peer-to-peer network, every transaction is instantly and publicly recorded on every user’s computer. This keeps everyone informed every step of the way, eliminating the need for third-party escrow companies to manage the transaction. Now that this step of the process is no longer necessary, commercial real estate transactions are becoming cheaper and much faster.

Easier to micro-invest

Many residential and commercial property buyers today don’t just buy entire properties, but instead partner with other investors to syndicate properties together. While the cost of transferring money is currently a hurdle for micro-investors, these transaction costs are almost non-existent with blockchain. This makes the blockchain incredibly conducive to anyone looking to start making micro-investments.

Easier to invest internationally

Transaction costs are also a barrier to international investment in commercial real estate. Waiting times and shipping costs can make it not worth the risk or effort. By using blockchain, parties can avoid the risk of currency exchange and buy real estate anywhere in the world.

The widespread use of the blockchain in real estate is still a long way off. However, as its use becomes more widespread, blockchain will almost certainly become a major player in the commercial real estate industry.


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