Get Real: Commercial Real Estate Poised to Leverage the Blockchain

Commercial Real Estate  

Commercial Real Estate is a large and thriving industry. On a global scale, CRE has a value of over USD $30 trillion. But what if this number could be larger? Enter blockchain. The use and implementation of blockchain in CRE has the potential to efficiently change the current format of business within CRE, increasing overall efficiency, ease-of-use, value, trust, and transparency.


On the Blockchain

Though not currently mainstream, blockchain use in CRE is increasing as users experience the value of blockchain. Find out more detailed information about what a blockchain is here.

Using a blockchain in CRE transactions has a multitude of benefits. The main of which is digitizing processes within CRE. This might include digitizing mortgages, property deeds, and agreements for ease of access.

Blockchain provides a highly secure “vault” for this data to be stored. Additionally, blockchain in CRE helps to cut down on associated costs, such as needing an attorney or notary to verify documents or validate transactions.

As a faster process, blockchain cuts down on time and overall expenses associated with many processes within CRE. Blockchain is able to authenticate deals, ensuring trust and validity for each party. In turn, this creates smoother and more transparent transactions – every transaction on a blockchain is securely timestamped allowing for transparency on all levels.

Blockchain can also handle high data input on its digital ledger. Due to the blockchains secure nature, data can be kept confidential while transaction records become transparent. Record-keeping in CRE therefore can become much more fluid, efficient, and secure.

CRE investors benefit from these characteristics, especially the fluidity and ease of data accessibility on blockchain.

As such, CRE using blockchain would be able to ensure trust and attract more investors. It would also help improve portfolio management by providing verification of the data prior to investment, ensuring authentic sources.


Tokenizing CRE Assets

Arguably one of the most game-changing aspects of CRE use of the blockchain is the opportunity it poses in digitizing assets. Through tokenization, assets become “digital tokens” and can be traded instantly like stocks and bonds; this opens the gates for more liquidity in CRE and creates a more uniform marketplace for capital.

CRE assets as digital tokens are also likely to increase the number of investors able to contribute to the project, given that these tokens are digital and can be easily distributed and fragmented.

CRE blockchain tokenization also enables the use of “smart contracts” within the blockchain.


These contracts, which exist as a way of ensuring trust and efficiency between parties, include contingencies based on the proposed agreement. For example, a smart contract initiated between two parties on the purchase of an apartment building might hinge on the buyer’s ability to transfer the payment before the deed is released from the seller to the buyer. The Blockchain ensures that these digital tokens can only be transferred to the intended parties, – or blocked from transfer if conditions are unmet.

CRE smart contracts and digital tokens allow the user to automate and customize the process. Additionally, utilizing the blockchain can ensure CRE contracts and conditions are regulation compliant – cutting down on overall costs.

The use of blockchain in CRE can revolutionize the current processes, bringing new and widespread benefits to clients, investors, and businesses and expanding the value of global commercial real estate.

Follow us on social media for the latest updates in the world of Blockchain and Web3!


Mindful Leadership : Writing and Publishing Work in Web3
January 24, 2023
CEO of Gruve, Alec Jendal, gives perspective on how he sees Web3 changing the dynamic of how people write and publish their work.
CRE Property
AI and Blockchain: The Future of Commercial Real Estate Management and Maintenance
December 15, 2022
When it comes to the use of AI and blockchain to optimize the management and maintenance of commercial real estate portfolios, the future looks bright. Gone are the days when commercial real estate portfolio Read more
Music NFT
The Rise of NFT’s in the Music Industry: Benefits, Challenges, and Future Potential
December 12, 2022
What Are NFT's? Non-fungible tokens, or NFT's, are unique digital assets that are verified on a blockchain. This means that they are one-of-a-kind and cannot be replicated or replaced, making them valuable and Read more