Page 49 - RC19 RealcommEDGE 2019 Fall Issue

Based on a global survey of 400 CRE
executives, driving efficiency through automation

is a key priority, and the use of AI and machine
learning is approaching a critical mass.

A Shift in PropTech
“The combination of new market RISE OF DISINTERMEDIATION:
entrants, new technologies and changing
demographics have created disruptive CUTTING OUT THE MIDDLE
models within CRE. This is having a Commercial real estate (CRE) firms are
increasingly using transaction-based
profound impact on portfolio planning and % technology platforms to cut out middle
decision-making,” said Bob Courteau, CEO, 61 steps and streamline processes
Altus Group. “At the same time, this presents of CRE executives
new opportunities for organizations who indicated their firms are
using or already trying
out ONLINE LENDING
rapidly embrace innovation and PropTech to MARKETPLACES, with
23% using them in a
reduce complexity, increase efficiency and significant way
drive performance.” 60 %
of CRE executives indicated their firms
While CRE executives may still be skeptical of are using or already trying out ONLINE
INVESTMENT MARKETPLACES AND
the impact of some emerging technologies, CROWDFUNDING PLATFORMS, with
22% using them in a significant way
many recognize the changing landscape
and the need to adapt and invest to remain
competitive. As a result, CRE firms are www.altusgroup.com Source: Altus Group CRE Innovation Report 2019
no longer simply anticipating that new
technology will have an impact on their
industry—they are actively participating in
this change through direct investment in HEDGING BETS:
PropTech. The report indicates 53% of CRE CRE FIRMS INVESTING
firms directly investing in at least one type
of PropTech firm. PropTech companies IN PROPTECH
focusing on smart buildings systems, online
lending marketplaces, and online investment 53
marketplaces and crowdfunding are the top of commercial real estate (CRE)
investment choices for CRE firms. firms are directly investing in at least one type
of PropTech firm
Other key findings from this year’s report
include:

• Nearly one in ten (10%) CRE executives
“don’t really understand blockchain and what TOP 3 TYPES OF
it does,” while 37% of executives expect PROPTECH COMPANIES 15 % 15 % 12 %
that CRE firms are investing in: Smart Building Online Lending Online Investment
Continued on page 51 Systems Marketplaces Marketplaces and Source: Altus Group CRE
Innovation Report 2019
Crowdfunding www.altusgroup.com
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