Four Technology Trends Impacting The 2021 Commercial Real Estate Market has been saved
Four Technology Trends Impacting The 2021 Commercial Real Estate Market
Real Estate Technology Trends 2021
Digital transformation has become increasingly important within the commercial real estate (CRE) industry for more than a decade. In recent years, property technology within the real estate industry has soared, with a growth of 1072% between 2015 and 2019. Despite the pandemic, this is a trend that continued in 2020.
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According to Jim Berry, Vice Chairman and US real estate leader at Deloitte, the pandemic did create challenges for the real estate industry. However, it also served as an accelerant of the already existing trends. Furthermore, Berry believes that 2021 and beyond will be even more telling, as certain CRE companies take opportunities that align their operations with those of the occupier and end-user.
Berry highlights that as a result of Covid-19, real estate users and what is valued have become more center stage when it comes to company leaders’ decision-making. “For example, where people work will depend on business needs and employee preferences. As companies examine their culture, purpose, and preferences, CRE leaders will [..] benefit by embracing this and integrating it into their planning and investments.”
Berry says Deloitte sees “purpose, location, and analytics” as the continued evolution of the value proposition of CRE.
As previously mentioned, Berry considers the pandemic an accelerant of existing trends and believes that leaders will have to walk the tightrope between managing costs and investing in the future. According to John D’Angelo, US real estate leader, the impact of Covid-19 on commercial real estate is accelerating the following four trends in 2021 and beyond.
Rise of digital twins. The CRE industry possesses and creates a large amount of data. According to D’Angelo, capturing and using the data about the building itself in combination with Internet of Things data about how the building operates will make operations more efficient, improve occupant experiences and identify (potential) issues.
Direct digital engagement. Direct digital engagement within real estate ensures a safe and healthy environment by providing touchless services and automates the traditional processes.
Data and analytics. According to D’Angelo, data-driven decision making will continue to mature as the demand and behavior patterns change. CRE companies will use data-driven decision-making to understand and respond to these changes’ opportunities and risks.
Robotic process automation. Although Robotic Process Automation’s adoption has been slow within CRE, D’Angelo expects that it will play a role in overall digital transformation efforts as CRE companies work to improve operational efficiency and reduce costs.
“Ultimately, a CRE company’s competitiveness in the post-COVID-19 world could hinge significantly on the extent to which their people can succeed in a digital work environment,” said Berry.