Advisory Banner

ADVISORY

ADVISORY NEWSLETTERS

Altus Group Report Reveals Industry Disconnect on Impact of Game Changing Technologies in CRE

Vendor Profile

No one would dispute that technology is changing at a pace never before seen. With five generations of CRE Tech at play, real estate organizations continue to be challenged with identifying, evaluating, testing and implementing new ideas. Realcomm is constantly trying to assess how the industry is doing in respect to the speed of adoption vs. the speed and capabilities of emerging technologies. At our General Session in 2017, we used the analogy that "Corporate Real Estate is traveling at 25 mph, Commercial at 50 mph and that today's technology is capable of moving us at 100 mph while tomorrow's technology will allow us to move at 200 mph." The biggest question is, "how will Commercial and Corporate Real Estate reconcile the difference in speed?"

The recent study/report by Altus Group takes a comprehensive look at our industry's adoption rate of technology and emerging new innovative ideas. We would like to applaud the Altus Group for their efforts on this study and their overall thought leadership in our industry.

Altus Group, a leading provider of independent advisory services, software and data solutions to the global commercial real estate (“CRE”) industry, recently released the latest annual Altus Group CRE Innovation Report revealing that CRE industry leaders are divided about the potential of new technologies to drive industry-wide change.

According to the report, which is based on a global survey of 400 CRE executives at firms with assets under management of at least US $250 million representing a total of over US $2 trillion, a large majority of executives report their firms have benefitted from technology investments made over the past two years. However, when presented with six rapidly emerging disruptive technologies, only a minority of respondents recognized them as having the potential for major disruptive impact:

  • Smart Building Technology – 35%
  • Artificial or Machine Intelligence – 28%
  • Big Data and Predictive Analytics – 24%
  • Augmented and Virtual Reality (AR/VR) – 18%
  • Blockchain Technology – 15%
  • Driverless Vehicles – 9%
While these technologies were met with reservations from executives, over 50% of respondents indicated that many major CRE processes and workflows could be significantly or completely automated. This suggests a significant impact on the people associated with these processes while at the same time presents opportunity for resource reallocation to areas that will drive greater value. The results imply the industry is ready for the acceleration of automation, which will completely change the way tasks like 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, CEO, 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.”

Other findings from this year’s Altus Group CRE Innovation Report include:
  • Only 14% of executive respondents say they compare their operational expenses against competitors, the market or industry, indicating a significant performance management shortfall, however, 69% believe there is significant potential to conduct better benchmarking around operational expenses. This suggests that a deeper analysis of property expenses is an overlooked area in terms of applying analytics and monitoring – and has the potential to unlock greater portfolio value.
  • 58% say their firms are using significantly more CRE-specific applications now than they were three years ago, however 59% say they do not have significant integration between major management systems and applications, which can hinder their ability to make faster and more transparent decisions.
  • 50% indicate their firms have a shortage of technology staff, suggesting that a lack of skilled IT professionals continues to be a barrier for CRE firms trying to make the most of their technology and data investments.
The Altus Group CRE Innovation Report is based on a global quantitative survey of 400 CRE C-level and senior executives in both front and back office positions at owner-operator and owner-investor firms in North America, Europe, Asia-Pacific and Latin America. All firms represented in the survey had assets under management (AUM) of at least US $250 million at the time of being surveyed, representing an approximate total AUM of over US $2 trillion. The survey research, which was used to help form the basis of the report, was conducted by leading international research firm IDC in September 2017. Download the full report.

Jeff Hayward, VP, Global Marketing & Communications, Altus Group
Jeff Hayward's enterprise software industry background includes extensive international experience in areas of marketing strategy and corporate communications. Currently as VP, Global Marketing & Communications of Altus, he is focused on developing and executing global marketing strategies to drive demand in product and services, increase brand awareness and strengthen customer retention.

This Week’s Sponsor

Angus Systems is a leading provider of customer driven mobile and cloud-based work order and operations management solutions for commercial real estate. Our software supports over 2 billion square feet across North America in buildings from 20,000 to portfolios of more than 100 million square feet. Visit www.angus-systems.com to learn how we help our clients shine.

Realcomm News

UPCOMING REALCOMM WEBINARS

Commercial and Corporate Real Estate Cyber Risk - Developing a Comprehensive Strategy - 10/25/2018

Hardly a day goes by that we don’t hear about a Cyber breach. The most recent of scale was Equifax, the credit reporting agency in which credit information of 143 million of its clients was breached. While most of the incidents we hear about involve data or financial theft, there is a looming threat…our built infrastructure. This infrastructure includes everything from power plants to dams, but also includes the millions of buildings we use every day to work, shop, learn, recreate, manage our health and more. The threats range from unwanted building access to pirating of video surveillance and everything in between. This webinar will focus on the entire spectrum of Commercial and Corporate Real Estate cyber challenges, solutions and strategies.

headshot for Jim Young
Jim Young Realcomm
Jim Young Co-Founder & CEO Founder of Realcomm Conference Group, an education organization that produces Realcomm, IBcon and CoRE Tech, the world's leading conferences on techno
headshot for Jim Young
Jim Young
Co-Founder & CEO
Realcomm
LinkedIn

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.

headshot for Tom Shircliff
Tom Shircliff Intelligent Buildings
Tom Shircliff Co-Founder Tom Shircliff is a co-founder and principal of Intelligent Buildings, a nationally recognized smart real estate professional services company that was
headshot for Tom Shircliff
Tom Shircliff
Co-Founder
Intelligent Buildings
LinkedIn

Tom Shircliff is a co-founder and principal of Intelligent Buildings, a nationally recognized smart real estate professional services company that was started in 2004. Intelligent Buildings provides planning and implementation of next generation strategy for new buildings, existing portfolios and urban communities. Tom is a speaker and collaborator with numerous universities and national laboratories, a gubernatorial appointee for energy strategy and policy and founding Chairman of Envision Charlotte, a Clinton Global Initiative.

headshot for Sandy Jacolow
Sandy Jacolow Meridian Capital
Sandy Jacolow CIO As CIO at Meridian Capital, Sandy Jacolow oversees the firm’s nationwide innovation and technology initiatives that support the company’s brokerage, i
headshot for Sandy Jacolow
Sandy Jacolow
CIO
Meridian Capital

As CIO at Meridian Capital, Sandy Jacolow oversees the firm’s nationwide innovation and technology initiatives that support the company’s brokerage, investment sales and retail leasing businesses and growth activities.

headshot for Annette Prater
Annette Prater Brookfield Properties
Annette Prater SVP, CIO
headshot for Annette Prater
Annette Prater
SVP, CIO
Brookfield Properties

headshot for Ron Victor
Ron Victor IoTium
Ron Victor Founder & CEO Ron Victor is a Silicon Valley based technology entrepreneur with 20 years of experience and expertise launching new ventures at start-ups and fortune
headshot for Ron Victor
Ron Victor
Founder & CEO
IoTium

Ron Victor is a Silicon Valley based technology entrepreneur with 20 years of experience and expertise launching new ventures at start-ups and fortune 1000 technology companies. To-date he has enabled raising more than $30Million in start-up capital for multiple start-ups in silicon-valley. Ron has founded and led three companies to-date with successful exits. His latest venture is IoTium Inc. – a Silicon Valley start-up that provides a secure, cloud-managed, easy-to-deploy software defined network infrastructure for all IoT verticals.

headshot for Coleman Wolf
Coleman Wolf Environmental Systems Design
Coleman Wolf Security Practice Leader Coleman Wolf has extensive experience developing enterprise-wide access control and alarm monitoring systems, developing business analyses, and conduc
headshot for Coleman Wolf
Coleman Wolf
Security Practice Leader
Environmental Systems Design

Coleman Wolf has extensive experience developing enterprise-wide access control and alarm monitoring systems, developing business analyses, and conducting detailed security surveys and assessments of corporate offices, power generation plants, and facilities related to national critical infrastructure. Coleman has also managed numerous security system installation and upgrade projects. He holds a Master of Science, Computer Information Systems degree from Northwestern University and a Bachelor of Science, Electrical Engineering degree from the University of Michigan. He is also CPP (Certified Protection Professional) and CISSP (Certified Information Systems Security Professional). Coleman also holds the following Professional / Civic Affiliations: ASIS (Member of American Society for Industrial Security), Chairman of the ASIS Information Technology Security Council, and is an active member of the ASIS Security Architecture and Engineering Council.

headshot for Wade Hughes
Wade Hughes 5Q Partners
Wade Hughes CEO
headshot for Wade Hughes
Wade Hughes
CEO
5Q Partners
LinkedIn

headshot for Don Goldstein
Don Goldstein AdKahn
Don Goldstein CEO
headshot for Don Goldstein
Don Goldstein
CEO
AdKahn

headshot for Malcolm Hobbs
Malcolm Hobbs Join
Malcolm Hobbs VP Marketing & Market Development
headshot for Malcolm Hobbs
Malcolm Hobbs
VP Marketing & Market Development
Join