After a tumultuous two years, the commercial real estate (CRE) industry is at an inflection point. The increased use of smart building software and emphasis on flexible, hospitality-driven workplace experiences has changed the core ways industry operates.
As we look ahead to 2022, some variables remain uncertain, but one thing is for sure: technology is absolutely essential to ensuring the success of the workplace.
To become undisputed leaders in the space, CRE firms must now focus on modernizing their properties so that they can easily incorporate the emerging technologies shaping the future.
Smart Building Software as a Core Differentiator
In their 2022 Commercial Real Estate Outlook, Deloitte highlights recent investment trends and concrete steps that firms can take to unlock new revenue streams and keep their assets competitive.
Their findings show that investment in innovation is not slowing down anytime soon: Technology budgets could see an average increase of as much as 10.3% in 2022, with respondents from North America and APAC expecting the biggest increases in spending.
Additionally, 44% of technology respondents plan to accelerate innovation rather than suspend expenditures and investment. Across the entire CRE industry, this is being accomplished by firms increasingly using alternative data such as foot traffic and walkability scores to differentiate their properties and attract tenants that value flexibility and accessibility.
Essential Strategies for 2022
Smart building software is also helping industry leaders unlock additional sources of revenue. To ensure that their portfolios are ahead of the game and optimized for innovation, there are a number of changes that firms can make:
- Innovating traditional offerings to enhance property experiences through value-add services and increased flexibility with tenants. Smart buildings may enable this through on-site access control, hybrid working spaces, and additional functionalities that better the workplace experience.
- Offering additional services, insights, and experiences. Landlords should thoroughly assess how their spaces are being used through data and analytics tools, and then “build capabilities that offer tenants plug-and-play properties.” Smart building management systems and smart building solutions can help with this process.
- Partnering with or investing in proptech companies to make their digital investments possible.
On the latest episode of The Let’s Go Show with Chase Garbarino, CEO of CRETech Michael Beckerman made similar 2022 predictions for the industry. He anticipates that the emergence of more end-to-end solutions will result in less fragmentation in the marketplace, and overall, a consolidation of smart building technologies and services will help address the key issues facing the industry.
One such issue that arose in their conversation was an increasing focus on climate change: “Companies are finally addressing climate change,” Beckerman remarked.
The increased regulations around sustainability may take the industry by surprise, he noted, but climate change will ultimately impact the operations of every single real estate company. Energy management and waste reduction technologies, among others, offer promising avenues towards sustainable properties and resilient cities.
In the new year, building owners and operators should prioritize the modernization of their portfolio by adopting smart building software. Digital investments will not only keep assets competitive and flexible, but also serve as an important preparation for any obstacle to come in 2022 and beyond.
To learn how to stay ahead of the curve and enhance your portfolio’s digital technologies, schedule a free consultation today.