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
In-Building Wireless - The Long Hard Journey Continues - 4/26/2018
Many emerging countries have the benefit of not having to manage existing telecommunication infrastructure. In developing countries such as Korea, China, and India they have gone straight to the most current infrastructure and as a result have extraordinary coverage outside and inside buildings. Today, in many iconic as well as average buildings in North America, cell coverage is not guaranteed. With the world becoming more mobile and device dependent, unreliable coverage inside buildings is a growing problem. This webinar will provide an update on emerging technologies as well as overall strategies designed to address this important issue.
Ted Maulucci is the President of SmartONE Solutions, a company committed to advancing the digital living experience in communities. He assumed the role of President at SmartONE after a 26 year career as the Chief Information Officer of a leading Toronto based multi-family real estate developer. He was recognized as the Private Sector Canadian CIO of the Year in 2016 for his achievements in connected buildings.
Marc Gittleman oversees 3rd Party Services throughout Rising's 3+ million sq. ft commercial real estate portfolio, business development of integrated verticals, and Rising's energy, sustainability and technology initiatives. Marc has also participated as a GP investor in over $600M of transactions. Marc is also CEO & Co-Founder of 5x5 Telecom, a fiber optic ISP and smart-building platform located in Los Angeles. He is a noted expert in real estate innovation.
Brian Schwartz is responsible for Smart Building Infrastructure at over 50 centers portflio wide. He oversees the installation and support for CCTVm Wi-Fim Energy Management, shopper counting, and DAS. Brian support digital marketing initiatives including digital signage and property websites.
Richard J. (“Dick”) Sherwin has been involved in wireless communications and radio frequency transmission for the past 30 years. Together with a number of telecommunications veterans, he founded and funded Spot On Networks, LLC, a provider of wireless telecommunications for the Multifamily Residential and Multitenant commercial building industry. Previously, he was CEO of Metromedia International Telecommunications Inc. and as a member of the Board of Directors of Metromedia International Group, Inc. since its inception. He was instrumental in establishing approximately 47 wireless and wired telecommunications ventures in Eastern Europe and the former Soviet Union Republics in wireless telecommunications including cellular telephony, cable television and radio paging.