At the end of 2018, people who talk about commercial real estate trends were calling it the Age of Adoption. With nearly a 100% increase in funding to real estate technology startups between 2015 and 2016, there was a clear acknowledgment, even within our slow-moving industry, that the way forward was through technology. More importantly, there was both the need and the desire for technology purpose-built for the only segment within the market without dedicated advocates-Owners.
Before We Call it Important, What is PropTech, Exactly?
“Owners...carry the greatest risk. So much so that they need tech platforms and digital resources created primarily for their use to consolidate operations, share organizational intelligence, and deliver projects in less time and at less cost.
I remember looking at my iPhone and thinking that with this tiny device, a small team could make piles of binders and months of analysis on reams of paper completely obsolete.”
PropTech matters because utilizing technology to power commercial real estate is no longer a competitive advantage. KPMG, in its annual Global PropTech Survey, indicated that nearly all decision-makers who replied to the survey, understand the extent to which digital and technological change will impact their business globally, and nine of ten respondents agreed that,
"Traditional real estate organizations need to engage with PropTech companies in order to adapt to the changing global environment globally."
The importance of innovating the way real estate is managed is top of mind across leaders in commercial real estate. VTS interviewed Thomas Au, on the risk of failing to integrate technology as essential to commercial real estate operations, and this was his assessment,
“While it’s important to think about the cost, opportunities, and risks of introducing technology, it’s actually more important to consider the risk of not introducing it — especially given today’s competitive environment.”
PropTech matters because as organizations, teams, and portfolios grow, consistency and transparency become increasingly important. Transparent, best-in-class, purpose-built technology that provides accessible aggregated data to all stakeholders and decision-makers provides a single source of truth. Duplicate entry and human error are minimized by APIs that allow for seamless information-sharing streamline project execution, improve budgeting and forecasting. Better informed decision-making occurs in less time, and businesses become more agile in the process.
We See Three Key Opportunities for PropTech:
- Owners will benefit from as-needed access to their asset performance data instead of waiting for quarterly, semi-annual or annual assessments that require manual aggregation and review.
- Owners gain greater capacity for expanded risk management including advanced analytics, financials, and operational assessments.
- Automated portfolio management with minimal administrative drag will position teams to be better able to focus primarily on creating value rather than reviewing spreadsheets.
Time is a Precious Resource, and We Could All Use More of It
Automation minimizes errors while eliminating the possibility that things get missed. Automated workflows and cloud-based project management had the effect of returning “one additional week per month” to teams leveraging PropTech. In addition to time, digitization of administrative tasks through automation reduces expenses by way of increased efficiencies.
IMAGINE NEVER MISSING ANOTHER PIECE OF HONEST BUILDINGS CONTENT.