It is becoming apparent that landlords need to embrace e-commerce. It is an industry that has not changed much in recent times. In the retail leasing space, e-commerce businesses are putting brick and mortar companies out of business. In every sector, digital transformation is evident. Landlords are finding it hard to locate new tenants to fill the void.
E-Commerce Is Killing Retail Stores
Retail stores are being replaced by e-commerce applications to a large extent, and it makes sense. With online stores, customers can simply browse online and get their products delivered to them. This often comes in the form of next-day delivery. The millennial generation wants their items as soon as possible, and they do not mind paying for this service.
Moreover, physical outlets have large expenses; this includes the rental fee, lighting and other utility costs, employee wages, licenses, and more. However, with dropshipping and other innovations, it is now possible to manufacture and to deliver goods upon customer order. The online shop owner does not have to pay the costs for physical storage. These are very profound e-commerce benefits that are putting retail outlets out of business.
Landlords and Agents Need to Adapt
Digital inventions are changing the entire model of landlords and tenants. We are already receiving a taste of this through Airbnb and other innovations. Yet, there is still much room for further growth. For example, virtual real estate platforms are now operating, and these are faster, cheaper, and more secure than standard platforms.
Even more, blockchain and smart contracts can offer the ability to remotely sign legal forms and keep funds in escrow. They will reduce the need for lawyers and decrease third-party fees, as well as make the process more secure. Thus, they can even serve to reduce the sale price of houses.
Landlords Should Embrace E-Commerce
It does not have to be a battle between owners and e-commerce. In fact, e-commerce will help the overall industry. Like all new paradigms, it will make certain areas redundant. However, there are always other areas into which these people can move. That is because new technology creates new roles; it will create new fields for landlords and other people in real estate. It can also reduce costs so that owners can potentially purchase more properties.
Overall, the benefits of e-commerce far outweigh the negatives. So, landlords should really use the new inventions and adapt them to their field to increase quality and profits.