Next-gen tech will change CRE industry
5 things commercial real estate owners need to do today to future-proof their buildings and investment
The commercial real estate (CRE) industry is in the midst of a transformation over the past few years. Where digitization, automation and tech adoption have modernized the way the industry manages building portfolios, several needs still remain unmet. Changing customer demands, an experiential economy, real-time service delivery expectations, growing competition, and sustainability benchmarks are just some of the many priorities that real estate owners are struggling to balance and excel in.
So what can the CRE industry do to help them future proof their buildings as well as deliver a great facilities experience? The key once again lies in technology, but the focus has now shifted to an amalgamation of next-gen tech like IoT, AI and machine learning (ML), as well as data. The primary limitation faced by the CRE industry today has been isolated automation data, as well as having to deal with multiple tools, with varied functionalities (maintenance management to asset performance to tenant experience). But now, unified and data-led operation can empower the next era of commercial real estate, what we have termed CRE 3.0. And our recent survey and report, 2020 State of CRE Operations 3.0, revealed that the market itself is ready for this transformation. CRE owners themselves are realising the power of data, and the need to change, and change fast.
Here are 5 things we feel the report highlights CRE owners need to prioritise in 2020: 1. Data-driven decision making: Connectivity and inexpensive processing power are driving the creation of a ‘real time’ world, where we are able to monitor the performance of assets, and implement insights derived from that gathered data virtually instantaneously. Future-ready building management is inseparable from this ability to continuously leverage data, to create a truly responsive business model. 2. Outstanding tenant experiences: The contemporary consumer values experience, perhaps more than any preceding generation. For a built space to engage, empower and delight occupants, CRE and facilities managers need to invest in digital solutions that give them valuable and continuous insights into the services they are providing, as well as the flexibility to respond to end-user preferences seamlessly. 3. Energy management:
Given the sizable budget allocation it has traditionally required, and the stringent regulatory regimes being proposed in light of climate change, data-driven and real-time energy management will emerge as a crucial differentiator between commercial real estate businesses that thrive, and the ones whose operations are no longer competitive. 4. Centralised portfolio management: Digital solutions that provide a comprehensive unified view of real estate portfolios will be in demand. IoT and AI-enabled digital transformation is here to stay, in commercial real estate. 5. Tech-driven workforce:
With CRE portfolios a complex web of physical assets, workforces, vendors, service providers and much more, CRE can benefit from a single window to portfolio building maintenance that allows them to stay on top of their facilities, while involving all stakeholders.