Here are four accelerated technology trends impacting the 2021 commercial real estate market

Digital transformation has been a buzzword circulating in the commercial real estate (CRE) industry for more than a decade. The rapid pace of property technology in the real estate industry has grown 1072% from 2015 to 2019, and in 2018, venture capital firms invested $ 8.3 billion in Proptech companies worldwide.

“The pandemic has created unprecedented challenges for the real estate industry. It is important to understand that while the pandemic was an accelerator, it did not reverse the trends that were already taking place, ”said Jim Berry, Vice Chairman and US real estate director, Deloitte. “As memorable as the events of 2020 have been, 2021 and beyond will tell us how some CRE companies will begin to step into opportunities to better align their work with the work of the resident and the end user. ”

Berry says the massive worldwide experiment created by Covid has forced everyone to stretch themselves out to how they live and work.

“Property users – whether tenants or end-users – as well as how and what is valuable, have become more involved at a high level when it comes to management decisions. company as they move through re-entry and into the next normal one, ”said Berry. “For example, people work according to business needs and workforce preferences. As companies explore their culture, purpose and preferences, CRE leaders will [..] benefit by embracing this and integrating it into their design and investments. ”

Berry says Deloitte sees “purpose, place and analysis” as a continuing evolution of CRE’s value proposition.

“While the pandemic was an eye-opener, we see it as an acceleration of trends. It states that 56% of CRE respondents to our 2021 CRE Outlook survey reported the shortcomings in the digital capabilities of their organizations. Only 40% of respondents said their company has a digital transformation roadmap.

Berry believes leaders need to walk the slope between managing costs and investing in the future.

“The decisions made in 2021 will have an impact on those who begin to make a difference on themselves and manage this differentiated value proposition,” said Berry.

According to John D’Angelo, U.S. director of real estate, Deloitte Consulting, the impact of COVID-19 pandemics on commercial real estate (CRE) is accelerating these four technology trends in 2021 and beyond.

Rise digital twin. The CRE industry is generating and there is a lot of data. D’Angelo says by capturing and using data about the building itself as well as Internet of Things (IoT) data about how the building works to make it [..] more efficient operations, improving the experiences of residents (buyer, resident and patient) and identifying issues or potential issues.

Direct digital engagement. Through direct engagement in digital format with end-users of buildings, the provision of seamless services enables accessibility, ensures a safe and healthy environment and automates traditional processes. .

Data and analysis. D’Angelo says data-driven decisions will continue to evolve as demand and behavior patterns change rapidly, and CRE companies will work to address the opportunities and risks posed by these changes. revealing his answer. “Trying to do this with instinct or gut just doesn’t work effectively in this environment,” D’Angelo said.

Robotic process automation. According to D’Angelo, buildings have been very slow in leverage technology. “Robotic process automation (RP) is an example of the slow adoption of CRE. As we see CRE companies working to improve operational efficiencies and reduce costs, RPA will play a key role in overall digital transformation efforts, ”said D’Angelo.

“Ultimately, CRE company’s competitiveness in the post-COVID-19 world could significantly reduce the extent to which its people can thrive in a digital work environment,” Berry said.