2017 – That’s a Wrap! What’s in Store for Real Estate Technology in 2018?
Our theme for 2017 was about the 5 Phases of CRE Technology. The thinking behind this was we wanted to: 1) pinpoint the exact time when the Commercial and Corporate Real Estate industry started seriously talking about technology; 2) determine the time periods when elevated interest in CRE Tech occurred; 3) analyze which solutions were most prevalent in each phase; and 4) evaluate lessons learned about industry adoption after each specific phase.
A secondary theme that developed once we saw just how much technology our industry was dealing with was the extraordinary challenge of keeping up with all the new ideas and solutions as well as the reality of integrating them into conservative real estate organizations, which often required trying to adjust long-standing business models. We learned that most companies have limited capacity to introduce new ideas while keeping the business running, productive and profitable.
The trends we saw in 2017 will carry us into 2018. They will accelerate, become more mainstream and continue to integrate into the daily routines of Commercial and Corporate Real Estate organizations. There are other changes and developments, that if successful, could threaten traditional business models.
The following are some of the trends we will continue to keep an eye on in 2018:
Fundamental Real Estate Business Models
- Retail, Office and Industrial Real Estate Models are in transition
- Continued evolution of the Digital Transformation of Commercial and Corporate Real Estate
- Space utilization becoming more science than art
- Integration of brick and mortar and digital business models
- Shared economy’s continued impact: UBER, Airbnb, WeWork
- Space-as-a-Service (Saas) expands across asset classes
- Proliferation of mobile technologies
- Liquid Leases (flexible and fluid) continue to be defined
- Augmented and virtual reality continue to impact design and leasing process
- Autonomous vehicles impact ingress, egress and the design and construction of parking facilities
- Drones and robots expand their role in real estate operations
- Real Estate Operations and Building Data converge
- Succession planning and transfer to Generation X and Millennials increases
- A slowed pace in the creation of new CRE Tech Companies
- Great number of consolidations and merger and acquisition activity
- Increased closures of struggling companies and business models
- Increased pressure on startups for market penetration or financial stability
- Industry still looking for dominant companies and notable exits
- An abundance of cash remains for the right opportunities, ideas and companies
- Pressure continues for systems to be more open and interoperable
- Process automation becomes more finite and granular
- More expansive automation reach (front occupant facing as well as back-office)
- Greater emphasis on the UX/UI
- Data science becomes more mainstream as its benefits increase
- Increased use of analytics and ultimately AI
- Legitimate blockchain and cryptocurrency applications begin to appear in the market
- FASB deadlines loom while industry preparedness remains questionable
- Continued moderate adoption of smart building technologies
- The focus on wellness increases
- IoT becomes more seamlessly integrated with traditional building automation
- Consumer IoT forces development and adoption of technology (virtual assistants)
- Cybersecurity and privacy issues increase
- Sensors find their way into every piece of building equipment
- Smart lighting continues the path to increased adoption
- Low voltage and Power-Over-Ethernet (POE) conversations increase
- Microgrid and off grid concepts continue to increase
Some would argue that it would be easier to start a commercial real estate company from scratch utilizing all the new technological capabilities than to change the operational models of existing organizations. However, for the majority of real estate companies, this is not an option. 2018 will be filled with great opportunities as well as challenges. The technology is not the most challenging issue, it is our capacity as humans and organizations to change, which remains at center stage. Finding efficient and effective ways to discover, prioritize, test and implement both tactical and transformative technology will be the secret to success in the Age of Acceleration.
This Week’s Sponsor
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UPCOMING REALCOMM WEBINARS
Commercial Real Estate Digital Transformation - Managing the Change - 1/18/2018
The Commercial Real Estate and the Technology industries operate at very different speeds. Real estate is long-term, slow moving, and relies on practices that have been refined over the last 50 years. Tech, on the other hand, moves at lightning speed with constant updates and innovation. This webinar will focus on the extraordinary change management required to digitally transform a commercial real estate organization. Executive sponsorship, accelerated collaboration, dual strategies and other programs that will best enable this transformation will be addressed. In addition to operational changes impacted by tech, the webinar will also cover tech’s influences on other industries’ business models and how that affects the way we use space.
Founder of Realcomm Conference Group, an education organization that produces Realcomm, IBcon and CoRE Tech, the world's leading conferences on technology, automated business solutions, intelligent buildings and energy efficiency for the commercial and corporate real estate industry. As CEO, Jim interacts with some of the largest companies globally pertaining to some of the most advanced and progressive next generation real estate projects under development.
Bob Rybak Is the CIO at Morguard, a leading Real Estate Investment and Property Management firm based in Toronto, Canada. Bob has been an IT professional, entrepreneur and frequent consultant for almost three decades, working in both the public and private sectors. A graduate of the University of Toronto with a degree in Mechanical Engineering, Bob's professional experience has spanned many different companies in a wide range of industries.
Sandy Jacolow joined Silverstein Properties in 2011 as Chief Information Officer, a role in which he oversees the technology initiatives that support the company's financial, operations and development, including the World Trade Center, and Silver Suites activities. Sandy has been active in the real estate industry for nearly 35 years with a focus on the institutional advisory, property management and brokerage markets.
Alex Stanton has over 20 years working with in the real estate application space. Currently as VP of Solution Consulting for Yardi Systems, he leads the solution presales team, who work with customers and prospects to explore how to address business needs. Alex’s recent areas of focus has been to work with clients on the real estate specific applications of cloud, mobile, 'big data' and energy.
Marc Petock is a pioneer in leading the Intelligent/Smart Buildings and M2M movements pushing the industry forward and has contributed to transforming and changing the Intelligent Buildings and M2M (now IoT) industries. As VP, Marketing for both Lynxspring and its sister company, Connexx Energy, heleads corporate and product marketing, strategy, brand management, PR and communications that support the company’s strategic and growth initiatives. Previously, Marc was VP, Global Marketing and Communications at Tridium. Marc is also a contributing author, noted speaker and recognized industry leader having earned several industry accolades. He serves on the board of directors of Connexx Energy and Project Haystack; is an advisor to the Realcomm and a contributing editor to automatedbuildings.com.
Dave Clute has been AEC/FM/IT Design Professional for over 35 years. He spent 10 years at Cisco Systems and 5 years at Zurich Insurance before he joined ESD in 2017. Dave is currently leading the Intelligent Building Practice for ESD Global.
Scott Sidman has 14 years of CRE technology experience leading sales and marketing efforts. He is responsible for supporting company growth goals and assuring company and product direction aligns with market needs as well as leads. Scott is CRE tech evangelist and host of a CRE Tech Talks podcast.