PropTech Evolve and Mature Significantly

PropTech Evolve and Mature Significantly

PropTech has had about $70bn lend into it to-date. But what does it mean to you? In fact, PropTech has become a catchall phrase, and definitions will vary consistent with the environment you're employed in and your exposure to the market. Globally, there are over 7000+ PropTech firms (see Figure 1). Within the last 18 months, within the united kingdom commercial land space, we've seen PropTech evolve and mature significantly. Even so, we’re still within the nascent stages of industry transformation. There’s much work to be done, not only by technology and software vendors but primarily for the normal industry companies; for this is often where the battleground for change will ultimately be fought. Technology is evolving much faster than real estate’s appetite for innovation. 

Real Estate has long proven itself to be an impenetrable fortress. If the newest FuturePropTech, CogX, and RealComm events are anything to travel by, the queue of technology companies poised to breach is steadily increasing. Just outside the walls, tech giants are skillfully removing the hinges from the door. Don’t believe me? Take a glance at: 

• Google’s recent $13bn investment in data centers and offices across the US and therefore the recent $1bn to create 20,000 Bay Area homes

• Sidewalk Labs’ new smart city dream in Toronto

• Amazon's HQ2, Alexa Smart Homes division and its ever-progressing 288m sqft of offices, retail stores, warehouses, and data centers

• Microsoft's various IoT products, Azure Digital Twin service, $500m pledge to fight to house economically

• IBM’s Facilities Management products and IoT services

• Airbnb’s enter construction with Samara

• WeWork’s ‘Powered by We’ philosophy and its impending billion-dollar IPO (Successful infiltrator who has been performing on the locks from the inside) 

Despite the excitement of high-profile activity, there's still a pervasive wariness and distrust about the utilization of additional technology. a number of the larger players are embracing it in theory, but their hands are tied in accessing the complete value of such technologies until their own internal culture has been digitally transformed. it's a huge undertaking.

The connecting data tissue and business IP has largely existed within the memory of employees and an array of fragmented spreadsheets. Within the property industry, R&D spend vs revenue is ~0.08percent and within construction, it's ~1percent. Albeit these numbers were out by 50percent, these figures on R&D inland are shocking as compared to other industry norms. 

Commercial real-estate’s relationship with technology, though historically rocky, doesn't need to forego its happy ending. Want to fuel the romance? For traditional land companies to remain relevant and be ready to leverage all that technology has got to offer there are 4 things to know. 

1. The ultimate best experience that anyone has anywhere, becomes the least expectation for the experience they need everywhere. 

This is a quote from Bridget van Kralingen (Senior VP at IBM) in 2014. Once you truly understand this statement, this could be your catalyst for change and therefore the Polaris for your business. 

2. The gold rush for talent is on! 

All industries are fighting for similar resources that are skilled in enabling cultural and technological transformation. All property companies within the industry know they need to vary ...at some point. Regardless of the corporate size, someone with the proper skills is required to be focussed on business change and add up of solutions on the market. Transformation officers, analysts, data [anything] and engineers are in hot demand. The seasoned talent is going to be trying to find an alignment of vision and a seat at the table. If this can't be delivered, you'll struggle to draw in and retain. 

3. It takes money to form money. 

Do you want to ascertain your business digitally transformed? Does one want to differentiate by providing a seamless experience for your employees and customers? Does one want to figure faster, cheaper and smarter? In fact, you do! [And yes, please read those questions using your best X-factor voiceover impression] For this to happen, you'll get to assign and protect to allow subsequent few years. You would like a transparent runway for fulfillment. Today, most PropTech solutions are great at solving specific problems, (however theoretical), but the investment is going to be required to bring it all at once. Most of the PropTech companies have made it very easy to integrate. To form it all work would require a vision, time and commitment to manage these implementations and embed new ways of working. 

4. PropTech isn't just a prop. 

The slow uptake of PropTech is thanks to technology not being seen as a business enabler or differentiator. To some, PropTech maybe a checkbox exercise. Check in to at least one or two of the new products and you’re tech-enabled. Little effort, minimal pain, and no change. Consumer, customer, investor and employee expectations are evolving. No company can make, deliver or market its products or services efficiently without technology. No company can change, measure and manage its operations effectively without the utilization of technology. 

In October 2018, Susan Freeman (Partner at Mishcon de Reya) interviewed Brendan Wallace (Co-Founder and MD at FifthWall) on the impact of technology within Property. He said, “Real-estate is an industry that sat on the side-lines for two decades worth of innovation. They more or less missed the whole internet and every one of mobile." 

Real estate has been vicious to the past with a vice-like grip. PropTech has been a lone soldier, leading the charge for change. I’m not worried about property missing out on subsequent technological waves because PropTech isn't alone anymore. With increased collaboration and partnerships, Real-estate is an industry that can't sit on the sidelines for the subsequent 2 decades because others will make the selection for them.

 

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