Investment in technology has provided a benefit for CRE firms but their executives are less convinced by some of the rapidly emerging technologies and their ability to be major disruptors.
The report from the Altus Group polled more than 400 executives from large ($250m+ AUM) commercial real estate firms globally and discovered that 50% believe that many major processes and workflows in CRE could be automated.
That suggests that the industry is embracing the fast-pace of the shift to automation leading to a revolution in today’s debt underwriting, capital market brokerage and property management processes.
However, just 35% said that smart building tech would be a major disruptor; 28% cited AI; 24% big data; 18% augmented / virtual reality; 15% blockchain; and 9% driverless vehicles.
“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, Chief Executive Officer, 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.”
Against this backdrop of change, 50% of the report’s respondents said their firm lacks the technology staff to really make the most of their technology and data investments.
More market update:
Technology is providing commercial real estate executives with a balancing act according to a new report.