After decades of chugging along with business as usual, the commercial real estate industry has recently been shaken up by a new, complementary industry: property technology. Fondly known as proptech, this gamechanger brings both powerful software and an overall mentality shift — much like financial technologies, or fintech, did for the world of finance.
Property technology companies have hit the ground running to roll out all the best tools for real estate professionals to enhance their portfolios. As they continue to innovate, the proptech definition is slowly evolving to cover more than just professional needs in this industry. Now, proptech covers everything from automating daily building operations to tenant experience tools that take a customer-first approach. Those that embrace this technology will be positioned for success in a modern market, and those that don’t will risk falling behind.
Proptech is officially the new workplace amenity. But what does it mean, and why is it so important?
Foreshadowing Success: 2020 Real Estate Technology Trends
Although proptech companies started forming in 2010, they have only recently started bringing real change to the market. In 2020, many companies emerged to create solutions for the return to office, as modern health and safety needs rose to the forefront of every landlord and property team’s minds. Not surprisingly, according to GCA Global, the proptech market size had experienced significant growth: there was $4.4 billion raised in growth capital in the U.S. proptech space across 135 deals through June of 2020. GCA also stated that they believed the higher rate of proptech adoption would ensure that the industry would emerge stronger than ever.
This prediction rings true. Not only have real estate technology trends helped bridge the gap between the biggest companies in the industry and small startups through unique differentiation, but they have also helped organizations create efficiencies in their internal processes and better allocate their resources. As more real estate companies adopt the newest and most effective proptech 2020 systems, they can keep pace with competitors while providing that boutique experience their building occupants love.
The Future of Real Estate Technology is Versatile (Like the Modern Workforce)
When it comes to the power of proptech trends, this industry is just getting started in revolutionizing commercial real estate. Jim Berry, Vice Chairman and U.S. real estate leader at Deloitte, explains the continued rise of proptech trends even after the COVID-19 pandemic: “While the pandemic was an eye-opener, we see it as an accelerant of existing trends. It is telling that 56% of CRE respondents to our 2021 CRE Outlook survey said that the pandemic exposed shortcomings in their organizations’ digital capabilities. Only 40% of respondents said their company has a defined digital transformation roadmap.”
Defining one’s digital transformation roadmap means taking a closer look at typical commercial business models, and refining strategies to learn more about one’s end-users and to take a more customer-centric approach. The more teams leverage proptech to learn more about what tenants really want in their office buildings, the more teams will be able to successfully adjust and adapt as time goes on. The integration of proptech platforms will either make or break commercial real estate portfolios as offices adjust to the digitization of the industry. As Berry aptly points out: “Ultimately, a CRE company’s competitiveness in the [future] world could hinge significantly on the extent to which their people can succeed in a digital work environment.”
Proptech Examples for the Office
With so many proptech startups out there today, it’s difficult for up-and-coming real estate companies to sort through all the options. It’s even more difficult to see how trendy real estate companies can be applied to the office in real life. You may be asking yourself: Which proptech examples provide a truly effective system that best serves tenants and real estate pros alike? In short: the answer can be found with a look through the HqOS™ Marketplace.
Through our Marketplace, it’s possible to pinpoint the true innovators and adopt trusted systems that will work for both short- and long-term needs. Our best-in-class technology partners provide solutions across the following categories that can enhance your overall tenant experience: Access Control, Emergency Communications, Order Ahead, Resource Booking, Service Booking, Service Requests, Shuttle Tracking, Ticketing, and Visitor Registration.
With proptech companies being the new workplace amenity, implementing these technology solutions in your office will delight your tenants through establishing unique experiences, providing convenience throughout the day, and bring modern tools to a digital-first workforce.
Ready to Make Proptech Work for You?
Available proptech tools will help you become leaders in the future of the commercial real estate industry. With each new system you adopt — and with the help of a full tenant experience operating system such as HqOS™ — you’ll find it easier than ever to attract and retain tenants, differentiate your assets, and manage fragmented technology systems in your building.
Want to take your portfolio into the future of the real estate industry, as well as to learn more about our operating system? Schedule your free demo today!