Blockchain technology will likely impact commercial real estate

On Behalf of | Jun 28, 2018 | Commercial Real Estate

The fluctuations that have taken place in cryptocurrency have understandably made some investors and real estate professionals nervous. However, many real estate brokers in New York and elsewhere have reason to think that cryptocurrencies will drastically change the commercial real estate market. In fact, the changes could come as soon as five to 10 years from now.

Traditionally, parties to a real estate transaction meet together to complete the transaction, with cash exchanging hands to seal the deal. However, in the future, people may not necessarily have to meet in person to complete the transaction. In addition, Bitcoin or some other cryptocurrency might be used instead of cash.

This has major implications for real estate, as a real estate agent may no longer be needed to facilitate the now-digital transactions. Although this might not necessarily be good news for agents, it is good news for buyers and sellers. After all, Multiple Listing Service property data may become more centralized and, therefore, more accessible, and title records might be easier to transfer and track. In addition, real estate transactions might become more secure and efficient.

Real estate remains an exciting sector, especially with the changes that blockchain technology will most likely bring to it. However, it can also be confusing and overwhelming for those who are not familiar with the ins and outs of a commercial real estate transaction. Fortunately, an attorney can help both buyers and sellers to navigate these types of transactions so that their ultimate goals of property ownership or capital gains may be realized in New York.