Commercial Real Estate Outlook 2018
Optimize real estate opportunities in an ever-changing environment
How can real estate executives adapt their business models to keep up with the evolution of their ecosystem? Here are four priority areas for 2018 that may help them bridge the gaps while maximizing value and growth.
The real estate (RE) industry seems to be on an accelerating disruption curve highlighted by rapid changes in tenant dynamics, customer demographic shifts, and ever increasing needs for better and faster data access to allow improved service and amenities.
Real Estate companies need to be prepared for smart cities and mobility
Clearly, cities today are no longer mere aggregations of buildings and people. Moving forward, as the industry prepares for smart cities and mobility, RE companies seem to have no choice but to be constantly aware of new developments in this demanding ecosystem. At a broader level, there are fast-paced advancements
in mobile computing (5G technology), cognitive, and artificial intelligence, and use of enhanced datagathering tools such as sensors, which are widening the gap between changes in technology and business productivity. Often layering into the rapid change are workforce shifts in age, gender, and race that are affecting how we do business and redefining both cultural norms and “job/career satisfaction.“
Real Estate companies could maximize value creation and growth
Ecosystem developments appear to signal more change and uncertainty, and may even confuse many RE executives about the best way to move forward. We believe that companies should consider to look within at current processes and people and evaluate different ways to bridge the gap between technology advancements and business productivity. Based on in-depth research and analysis as well as extensive discussions with industry professionals, we expect that RE companies could maximize value creation and growth by prioritizing the following four themes as they plan for the next 12-18 months:
- Accelerate business: Unlock the value of real estate investment trusts (REITs)
- Avail alternative capital options: Focus on RE fintech startups
- Augment productivity: Embrace robotic and cognitive automation (R&CA)
- Advance people: Reimagine talent and culture
Overall, with the continuous shift at all levels—core business, tenants, and people—RE companies may have to take some risks and show dexterity in embracing change and adapting for the future. Read the 2018 Real Estate Outlook to discover more.
Do you want more information about the 2018 Real Estate Outlook? Contact Jan-Willem Santing on +31882888984.