The commercial real estate sector is facing strong disruption from technology advancements but it will not necessarily track the fastest-growing trends
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The commercial real estate sector is facing strong disruption from technology advancements but it will not necessarily track the fastest-growing trends.
A report from Altus Group polled more than 400 real estate executives globally, from firms with assets under management of at least $250 million. It found that investments in tech over the last 2 years has benefitted firms.
However, the fast-rise of smart building technologies is only seen as a major disruptor by 35% of respondents and other fast-growing trends are also not widely expected to have a big impact.
Just 28% said artificial intelligence (AI) would be a major disruptor for the commercial real estate sector; 24% thought big data/predictive analytics would be; 18% for augmented/virtual reality; 15% blockchain; and 9% driverless vehicles.
Around half of respondents said that automation would be a big part of the CRE processes and workflow which they believe can be significantly or completely automated.
It means that execs at large CRE firms are ready to embrace automation and completely change the way debt underwriting, capital market brokerage and property management are undertaken today.
“CRE firms are facing the challenge of finding a balance between operational benefits delivered by existing technology and the potential disruptive impact to business models by what’s coming next,” said Robert Courteau, Chief Executive Officer, Altus Group. “Organizations that will lead the way as the next wave of technology arrives are those that seek to change the rules of the game by disrupting traditional business processes and models, adding greater value and gaining competitive advantage.”
One barrier to larger use of tech solutions is a shortage of technology/IT staff with 50% of respondents reporting under-staffing in this area.
A report from Altus Group polled more than 400 real estate executives globally, from firms with assets under management of at least $250 million. It found that investments in tech over the last 2 years has benefitted firms.
However, the fast-rise of smart building technologies is only seen as a major disruptor by 35% of respondents and other fast-growing trends are also not widely expected to have a big impact.
Just 28% said artificial intelligence (AI) would be a major disruptor for the commercial real estate sector; 24% thought big data/predictive analytics would be; 18% for augmented/virtual reality; 15% blockchain; and 9% driverless vehicles.
Around half of respondents said that automation would be a big part of the CRE processes and workflow which they believe can be significantly or completely automated.
It means that execs at large CRE firms are ready to embrace automation and completely change the way debt underwriting, capital market brokerage and property management are undertaken today.
“CRE firms are facing the challenge of finding a balance between operational benefits delivered by existing technology and the potential disruptive impact to business models by what’s coming next,” said Robert Courteau, Chief Executive Officer, Altus Group. “Organizations that will lead the way as the next wave of technology arrives are those that seek to change the rules of the game by disrupting traditional business processes and models, adding greater value and gaining competitive advantage.”
One barrier to larger use of tech solutions is a shortage of technology/IT staff with 50% of respondents reporting under-staffing in this area.
