2020 commercial real estate outlook
Using digital and analytics to revolutionize tenant experience
Since the commercial real estate industry began, location, location, location has always been the traditional mantra. Not anymore. Deloitte’s 2016 smart buildings report predicted the new mantra would be location, information, analytics. Now, the industry has evolved even further. As we look to 2020 and envision the next decade, the most successful commercial real estate companies could follow the mantra: location, experience, analytics.
As we look to the milestone year of 2020, it has become urgent for CRE companies to prioritize tenants’ and end users’ needs, given the increasing influence of technology and changing customer preferences.
Our 2020 outlook surveyed 750 CRE executives—owners/operators, developers, brokers, and investors—in 10 countries during the summer of 2019 to assess how, and to what extent, emerging technologies and analytics are helping leaders make more informed location decisions and create a more memorable tenant experience over the next 18 months
Here’s what we learned:
- Tenant preferences are changing, due to increasing urbanization and globalization, changing workforce demands, such as flexible location and workspaces, and technology advancements, such as AI and Internet of Things (IoT).
- Most respondents rated tenant experience as a top priority. Yet, for a majority, digital tenant experience is not a core competency.
- Executives acknowledge that the benefits of IoT and AI technologies are not limited to tenant experience. They also can raise operational efficiency and lower costs.
- When it comes to tenant experience–related technology investments over the next 18 months, 36 percent of respondents expect their organizations to hold the line, 42 percent anticipate a moderate increase, and 14 percent plan to significantly increase.
Explore the 2020 commercial real estate outlook to know more.
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