PropTech will continue to reshape CRE in 2020
Deloitte’s Commercial Real Estate Outlook 2020 found that a majority of CRE professionals have positive views about how the CRE industry will perform over the next 18 months. The majority, 61%, are somewhat optimistic and another 15% claim to be very optimistic, while an additional 14% are neutral and 10% consider themselves to be somewhat pessimistic. The 2020 outlook includes surveys from 750 CRE executives in 10 countries. Regionally, respondents from Asia are the most optimistic, followed by those from North America and Europe.
The 2020 Outlook put a laser focus on “using digital and analytics to revolutionize tenant experience”. Specifically, the report explores various technologies that are shaping tenant expectations, as well as looking at how property owners, investors and service providers are incorporating tech across organizations to improve service, operating efficiencies and analytics. Notably, 92% of respondents plan to maintain or increase their tenant experience-related technology investments over the next 18 months. In addition, 72% of CRE executives plan to maintain or increase their overall technology investments even if an economic slowdown occurs.
Some of the key trends highlighted in the Outlook include:
- Tenant preferences are changing due to increasing urbanization and globalization, changing workforce demands for flexible location and workspaces and technology advancements.
- Most respondents rated tenant experience as a top priority. Yet, for a majority, digital tenant experience is not a core competency.
- Executives acknowledge that the benefits of IoT and AI technologies are not limited to tenant experience. They also can raise operational efficiency and lower costs.