The Use of Augmented and Virtual Reality in CRE
Rick Chatham, associate at Lee & Associates in San Diego and a member associate of SIOR, takes his role on SIOR’s tech and innovation committee very seriously. He stays in close contact with technology vendors and keeps tabs on what they’re developing and rolling out.
And although his enthusiasm is contagious, technology adoption within CRE is less so, especially when it comes to augmented reality (AR) and virtual reality (VR). “We tend to lag about eight to ten years behind residential,” Chatham laments. “Being so far behind doesn’t do us any favors.”
Ra’eesa Motala, SIOR, president of Evoke Partners, a Chicago-based firm that focuses on the intersection of commercial real estate, energy, and digital disruption, explains that AR “enhances the real world with digital overlays (a blend of virtual content and the physical world). It is usually experienced via smart devices or goggles and requires cameras and sensors to view digital content.” She points to Pokémon Go as an example: The app incorporates digital features into the real world “to create a multi-dimensional experience.”
VR, she continues, “immerses users in entirely virtual environments,” replacing the real world. Motala notes that VR usually requires headsets and often enables movement or manipulation of the virtual space. She herself enjoys the Beat Saber VR rhythm game accessible through Meta Quest headsets.
Another concept that frequently arises in discussions of AR and VR is the “immersive internet,” which some refer to as the metaverse. TechTarget describes the metaverse as a virtual world “where billions of people live, work, shop, learn and interact with each other – all from the comfort of their couches in the physical world.” The publication explains that in this 3D virtual realm, “digital facsimiles of ourselves, or avatars, move freely from one experience to another, taking our identities and our money with us.” It all sounds exceptionally efficient and somewhat scary.
APPLICATIONS FOR REAL ESTATE
The most interest and traction to date, Chatham has learned through his research. Some companies, for instance, are using custom-built VR apps to provide interactive tours of spaces. But AR is catching up, and the recent launch of Apple’s Vision Pro goggles may boost the momentum. Apple claims that the Apple Vision Pro seamlessly blends digital content with your physical space.
Having a solid first-hand experience of AR and VR is vital when trying to integrate either or both into your business practices.
If you don’t want to pony up a few thousand dollars for the goggles, you may wish to explore other, less expensive AR technologies, such as those Chatham uses frequently. One app is called “Magic Plan,” a tool that accesses the camera on his phone to develop a floor plan of space he walks through. He also adds Matterport 3D virtual tours to all of his online listings.
But to Chatham, these apps represent only a small portion of what is possible. He envisions a scenario where an industrial broker can go out into a big dirt lot, slip the new Apple goggles over a client’s head and enable the client to walk through the lot to see the new property overlaid onto it. The app would show where the roads and truck turnaround would be. In this scenario, the broker has a tablet on hand. If the client says, “Oh, but there won’t be enough space to turn the truck around,” the broker simply taps a few buttons and, boom, widens the roadways.
Brokers who show shell space for an office could benefit from the same app. Clients with goggles would see the shell space fully built out and furnished. When a client walks through the space and suggests a more open layout, again the broker just clicks a few buttons to change the layout.
Good news for Chatham, several proptech companies are dabbling in this arena. Oval Room by Buildout, for example, offers animated renderings of site plans, and is even incorporating drone video into the renderings. Companies like Matterport and Hover currently offer immersive and interactive 3D renderings of a space, created simply from shared smartphone pictures and/or data inputs. Architectural tech companies like Enscape and IrisVR offer VR and AR solutions that allow users to create immersive, real-time simulations of architectural designs, including buildings on empty land.
TIPS FOR EXPLORATION
Brokers interested in using AR or VR for business should think carefully about potential use cases to avoid wasting money. David Title, partner at Bravo Media Inc., which develops and produces dynamic experiences for events, installations, retail, hospitality, museums, corporate offices, and arenas, suggests experimentation.
Try various tools: “It’s vital that brokers first spend a significant amount of time trying out the various tools and applications themselves,” he says. “Having a solid firsthand experience of AR and VR is vital when trying to integrate either or both into your business practices. Start by going to the app store on your phone and downloading a ton of AR apps to check out. You will quickly begin to see where the strengths and weaknesses lie, and it will spark ideas for how to use these tools in ways specific to real estate.”
Motala supports this kind of approach. “Sometimes it can take trial and error or multiple platforms to understand what works most effectively for the intended goal,” she points out.
Research pricing: Chatham encourages brokers to research pricing of apps, which may be less expensive than anticipated. SIOR members, he adds, can ask the tech and innovation committee for advice.
Be mindful of risks: Motala recommends that brokers pay attention to privacy, security, legal and regulatory compliance, and social implications, including the growing digital divide. SIOR has published helpful articles on many of these issues: A good starting point is Protecting Your Data—and Your Client’s—from Cyberattack.2
Early adopters will have an edge. Title believes that the use of AR and VR will accelerate as the hardware becomes less expensive and more accessible, but that people who start now will be well ahead of the pack in the years to come.
In conclusion, brokers who want to position themselves for success will embrace AR, VR, and perhaps soon, the metaverse. If you’re willing to put on rose-colored goggles, the future will look bright.
CONTRIBUTING MEMBERS