In CRE, it’s Time to ‘Flock’ to Technology
The industry reaches a crossroads in its embrace of technology.
If you’ve been following my columns for the past several months, you’ll have noticed that I’m excited about how technology can be applied in commercial real estate. The potential for technology, data and analytics to positively impact our industry is everywhere I look, from running a better asset and executing strategy more effectively to being prudent stewards of risk. The pandemic has been a universal wake-up call, showing us the effects of once unimaginable events and spotlighting the importance of technology and data.
John D’Angelo
With vaccination rates rising and infections declining across much of the U.S., it will be interesting to see how end users interact with various types of real estate, and how developers, investors and operators leverage data and technology. As I’ve repeatedly observed, we’re seeing previous trends accelerate.
When we look back at this time, though, I don’t think “accelerate” is the word we’ll use to describe how the situation played out. I’ve heard “truth by assertion” comments (which I disagree with) about how things will quickly go back to the way they were pre-pandemic. I’ve also recently heard more nuanced, balanced descriptions of the immediate and near-term future for the industry (which I do agree with)—that is, nobody knows how the next few months and years will unfold.
I’m optimistic about how technology and data will improve the way we interact with the built environment; how we invest in, own and operate physical assets; and how we function as an industry. The frequency of conversations I’ve lately about related issues—collecting and leveraging data, automating or eliminating historically manual processes, and using technology to better operate and understand an asset—has skyrocketed. Even conversations about blockchain (which deserves its own column) have made a comeback. I’ve talked more about blockchain in the last two months than in the past three years combined.
I’m hopeful that meaningful change is upon us, in light of the gaps exposed by the pandemic, growing tech awareness revealed by Deloitte’s global real estate outlook, and the push toward stepped-up investment in technology. But I’ve often found myself saying, “If not now, when?”
I could always be wrong about the trends that are pushing us toward running our businesses better or about user expectations that call for improved adoption of technology. But let’s assume that I’m right. If the current combination of trends, the availability of technology and the increased appetite to do something doesn’t trigger widespread change, what’s it going to take?
I’ve been in real estate for too long to lose sight of the fact that we’re in a flocking industry. When something new is proposed, the first question is almost always, “Who else is doing this?”, whatever “this” may be. It takes time for any significant advance in technology to gain traction. And in an industry where there are typically few early adopters, I might be disappointed again by the pace of change.
But this time feels different. Or is it? I’d love to hear your thoughts because I honestly don’t know whether the answer to the key question—“If not now, when?”—is “never.” I sure hope it’s not.
John D’Angelo is a managing director with Deloitte Consulting and leads the real estate industry sector for Deloitte Consulting in the US. With over 33 years of experience as a management consultant to the global real estate industry, John has helped some of the biggest names in real estate leverage technology and use data to optimize and transform their operations.
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