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