This post explores the importance of property technology in real estate spaces. We also discuss why redesigning your corporate real estate is essential to your business and your employees.
Without exception, the pandemic has impacted all industries, including corporate real estate. Business leaders all over the world are customizing their standard operations to accommodate the new change. And with the reopening and return to the office, there are also emerging practices in managing corporate real estate.
1. Mission and priorities: Health & safety now shares top billing with cost savings as a leading priority informing the CRE mission.
2. Performance metrics: CRE departments’ performance is generally measured through financial goals (cost-related metrics as one of the top three metrics used to guide operations and performance: occupancy costs per square foot (63 percent), cost avoidance (57 percent), and occupancy costs per occupant/seat (51 percent).
3. Reporting structure: CFO remains the most common executive role into which CRE reports CFO (35 percent), COO (22 percent), and CHRO (10 percent).
4. CRE’s role within M&A: A majority of CREs report early engagement in mergers and acquisitions (80%).
5. Business unit engagement: CRE leaders foresee an increased focus on client relationship management (CRM) and portfolio planning in 2021.
6. Approach to budget ownership: The pandemic is causing many CRE departments to reconsider their approach to budget ownership and associated business unit (BU) allocation methodologies.
7. Departmental Centralization: Centralization of portfolio responsibilities through CRE has become standard industry practice.
8. CRE organizational design: The lasting effects of the pandemic have spurred many CRE departments to reevaluate the team’s organizational structure, roles, and responsibilities
9. New Skill Sets: CRE leaders are seeking new and different skills in response to the evolution of the workforce.
10. Data, technology, and analytics: CRE departments combine internal capabilities and service provider platforms to deliver portfolio analysis, operational reporting, CRM, and more.
11. Leveraging Service Providers as an Extension of CRE: CRE leaders are expecting to increase their use of outsourcing in the COVID era. (Read more here)
These leading practices deem long-term leases to be the biggest barrier. Long-term leases make it difficult for real estate owners to transition to more secure business operations. With this, corporate real estate leaders must devise a strategy to ensure that their business will thrive. Additionally, they must also address their employees’ needs.
Property technology has also dramatically changed how business leaders acquire, sell, and manage their real estate. In this case, property technology has contributed to the future of accommodation of workspaces. For instance, it helps create smarter and safer real estate environments.
The use of property technology also provides new services to business owners. For instance, real estate developers can now manage their properties more efficiently. They can monitor revenue, security, and other business concerns.
1: Proptech providers in China have deep war chests
2: Every major internet company has a playbook for real estate
3: Local proptech developers are agile, so foreign entrants beware
4: Real estate developers need proptech for new services
5: The winners take all
Read more here
Proptech Promotes Innovation in Real Estate Spaces
With the existence of the pandemic, many real estate owners thrive to keep their businesses alive. Property technology promotes innovation to increase transparency, speed, and visibility in real estate operations. With the use of property technology, real estate owners can effectively modernize their businesses.
Firstly, property technology promotes the automation of some administrative tasks initially executed by employees in real estate services. Property tech can improve customer service by minimizing laborious tasks. In return, this will enhance employee satisfaction and productivity.
Secondly, property technology enhances decision-making through keeping data-driven reports. In today’s world, business leaders have to keep making decisions that would impact their company. Property technology offers real-time data to back up those decisions.
Thirdly, property technology also improves accessibility and safety control for residentials. It can provide safety checks through digitalization. Property technology also enhances real estate workplaces through video surveillance and monitoring.
The use of property technology in property sector operations is valuable. If employees are the primary tenant of the space, it can enhance employee experience.
One of the concerns in commercial real estate operations today is redesigning tenant areas. If real estate is used by corporations, most of the changes will most likely affect their business and its employees. Commercial property owners should consider how they modify the corporate tenant experience to promote business growth.
In one of our videos, we look into how real estate has gone digital using property technology. We interviewed Jonathan Schultz, the Co-founder, and Managing Principal at Onyx Equities. He specializes in real estate and the technology to improve property services.
According to Jonathan, it is vital to keep our residents safe and happy. As a real estate owner, you should identify how your utilities are used in the space, especially when the primary users of the commercial area are corporate employees. Is your cafeteria accessible to the workers? Is your environment safe and engaging for work?
If you would like to learn more about how real estate has embraced digitalization, check out our channel over at YouTube. Our channel is Open Sourced Workplace.
Watch the video below to hear Jonathan and his opinion on modernizing commercial real estate spaces.
Now for your thinking time:
What is the most important amenity for your employees when entering your corporate office building?
How can you work with your landlord to develop a safe and secure environment?
What proptech projects do you think will provide the best user experience?
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