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
Achieving Optimum Energy Efficiency in Buildings - New Benchmarks Being Set - 7/26/2018
Five years ago, the driving factor for smart buildings was energy costs. While operational efficiency and occupant experience have been added to the discussion, energy savings still play an important role in the smart building strategy. Energy usage in buildings accounts for over 40% of electrical consumption which has ties to coal, natural gas, petroleum and nuclear energy. Energy waste in buildings is easily evident and provides great opportunities when addressed. Advanced energy analytics, enhanced building automation monitoring, new lighting solutions, low voltage infrastructure, micro grids and other technologies are reshaping the building energy landscape. This webinar will bring best practices and new benchmarks into focus.
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.
Kevin Bates is the owner of Sharp Development company. Over the past six years, he has concentrated on retrofitting older generation concrete tilt-up buildings that are carbon neutral, have a net zero energy bill as well as a strong emphasis on the health and wellness of the interior environment for the occupants. The driver for Kevin is to demonstrate that this way of repurposing existing building stock can be done in a manner that is more profitable for the ownership than the less expensive way of building to meet minimum code.
Dana bridges the gap between buildings and their occupants through fun initiatives that drive energy efficiency across LinkedIn’s global portfolio. With over six years of experience in corporate sustainability at both startups and large corporations, Dana understands the crucial role that business plays in addressing climate change. She is excited about how technology is transforming the built environment, and looks for opportunities to scale innovation and to help LinkedIn and others achieve audacious sustainability goals.
Matt Eggers is currently VP, Yardi Energy where he leads the development of software for energy management and high performing buildings at Yardi. He has extensive experience in leading teams to record sales and growing operations and market share.
With over 30 years of experience in commercial real estate and IT/Internet-based building services, Chris leverages his deep rooted knowledge of what is important to building owners and operators. He will discuss how ICONICS advanced building optimization software solutions with real-time Fault Detection and Diagnostics (FDD) help customers by integrating information from all disparate building equipment systems and energy metering into a uniform building automation system. Automated FDD visualizes in a meaningful manner what is critical to achieving energy reduction, operational efficiency and sustainability goals. Chris holds a BA from the University of Pennsylvania.
Ralf VonSosen has 20 years experience in technology product, marketing and customer operations. He is passionate about transforming data into actionable insights. Ralf leads Lucid's customer onboarding and professional services.
Karthik is the Director of Energy Management Solutions at EnerNOC. His team works with large energy users in the Commercial and Industrial sectors to deliver outcomes using energy intelligence software, utility bill management, smart building solutions, microgrids, and more. Karthik has over 10 years of experience in the energy industry and holds a Bachelors in Engineering Physics from Queen’s University and a Masters in Systems Engineering from Cornell University.