Augmented Reality technology is growing rapidly. The technology, depending on how it is implemented, can present both opportunities and potential problems for property owners. First, for all commercial properties, property managers recommend property owners to include augmented reality provisions regarding leases. In the long run, however, augmented reality could prove to be an additional source of income.
"One thing we're watching closely, and I think we're one of the first companies to have them in our property management agreements, is augmented reality, which I call the Pokemon Go theory." Kevin Rude, Director of Real Estate Services Colliers Internationaltells GlobeSt.com. “This is the next wave that will hit the Los Angeles and New York markets first. I think everyone has to be prepared for it too. "
Augmented Reality is still a new concept and there are few rules right now. "It's the Wild West," says Rude. "We advise our customers." The early manifestations of augmented reality came in the form of advertising. Since most of the leases say nothing on this issue, the tenants were able to take over the exterior walls. “There may be a building with augmented reality advertising and the owner may not even know,” says Rude. "We're talking to our owners about control of this space on their contracts and build platforms as well as in their leases."
The biggest question: who gets the ad revenue? This is currently a question mark for owners who have not negotiated these deals. However, this also presented an opportunity. “We believe this will be a pretty good source of income for the owners at some point. This is the next step and comes quickly, ”says Rude. "We advise owners to be ahead rather than reactive."
Aside from revenue potential, owners must also consider the branding of the property and ensure that augmented reality experiences don't negatively impact the brand. “If a tenant puts something on the building, it can damage the brand. We want the owners to know their way around and take the appropriate measures to protect themselves from contractual and financial aspects, ”says Rude.
So far, few companies have had problems with these new leasing rules, and most companies have not. “Tech companies may be reluctant, but for a standard tenant, it's probably not on the radar yet,” says Rude.