Normally when you look at an area to determine whether you would want to invest there, you look at these standard items:
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Are property prices rising or declining?
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How are the schools?
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What’s the crime rate?
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Are new businesses opening up and creating jobs?
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Is it easy to commute to and from your area?
Traditionally, those have been great questions to help real estate investors narrow down great areas.
But should there be more questions today?
Maybe we need to ask questions that are beyond the traditional.
Think about this...
Your potential market consists of people who generally go to work, to school or even take a trip to the supermarket at almost the same times during the day. This dramatic increase in infrastructure demand can put a serious load on ‘the system’ of your city.
There are 89.7% daily commuters in America using private vehicles, and there are 1 million other people wanting to move in similar hours. The problem is that America’s roads and public transportation can’t handle peak-hour loads without having people wait in lines for road space.
Just try driving on LA’s freeways.
And consider the loss of productivity and other business setbacks thanks to the time spent in traffic. But to every problem, the market will eventually find a solution.
‘Smart cities’ are being introduced to countries all over the world to help alleviate these problems and help pave the way to higher economic productivity – not just for the country as a whole, but also for small retailers, real estate investors and business professionals. Another goal is to make the citizens’ lives more convenient and comfortable.
As cities become smarter, as in more convenient, more people will move there.
Here is an example of one talk about improving traffic flow.
Connecthings Thought Outside the Box
Founded by Laetita Gazel Anthoine in 2007, a company called Connecthings envisions that smartphones have the capacity to bridge the gap between the physical world and the digital world.
Connecthings operates through a global network of beacons – such as Bluetooth, NFC, QR code and Wi-Fi – in public places. They want to revolutionize the city’s urban experience including:
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Street Furniture
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Train Stations
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Airports
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Malls
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Public Venues
They will be doing this by connecting smartphones directly to city services.
Connecthings is already operating in 60 cities in Europe and in Rio de Janeiro with over 130,000 connected beacons in public places, making them the biggest “Internet of Public Things” network all over the world.
The company’s headquarters is located in Paris, with offices in New York, Rio de Janeiro, Barcelona, Milan and Berlin.
What They Do and Solutions They Offer
Connecthings enables the city and its local partners (transport and transit authorities, local commerce and tourist offices) to effectively place beacons in public places and manage the interaction between users and their smartphones.
It turns passive public goods like bus stops, bike-sharing stations, public lighting and park benches into smart objects that are able to communicate with mobile users through smartphones, bringing them important information. Info like what time a bus is coming and where it is headed, nearby tourist information, business discounts, sales and specials in the area and more. It basically transforms urban physical assets into mobile connected experiences.
The service also boosts engagement and efficiency of mobile transport devices by providing information about roadblocks and construction.
Business operators in airports and shopping malls are even able to manage the notifications and contents their guests receive through specific apps or pages. And retailers can access personalized services to manage their company’s information or marketing campaigns based on the beacons.
Bring on the Beacons
At first, it might seem like you can simply Google all this information...
But, over time, the beacons can learn your preferences and offer ideas for leisure, discounts or times that are more advantageous for you to do things proactively.
Imagine how efficiently your business could operate using this service…
Maybe it’s time for real estate investors to start asking questions about how areas are becoming ‘smart.’
Have you visited a smart city?
Let us know about your experience in the comments section below.
Look into smart cities. Try looking into countries that have already adapted to this kind of technology and see what may be coming to a town near you.
Try out the services they offer. Local businesses may be jumping ahead of local governments to make their area smart. Talk to people or ask at the Chamber of Commerce what is going on in an area.
Get ready to adapt to these changes. Stay updated on the “Internet of Things,” which may radically change how we work and live in the years to come.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.