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.
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.
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.