Ten years ago, phrases we now use every day - “Thanks for the retweet”, “let’s Skype later” and “I’ve saved it in the cloud” - existed only in the realms of sci-fi.
Smartphones, Google, Bitcoin and broadband illustrate vividly how times have changed in this short period.
Of course, technology can be faddish and many innovations have now fallen away. But no one would now dismiss the iPhone, contactless payment or email. The property industry should not be dismissive of the latest innovations either.
The question is: what will the next generation of broadband or building information modelling look like and will it be virtual or wearable?
The real estate sector already utilises a lot of technology that contributes to workplace efficiency and productivity, but it is rarely highlighted as it doesn’t fall under the ‘proptech’ or ‘disruptor’ tags. Building management systems also provide operational efficiency and following occupier demand there is an increasing trend for
smart buildings. Companies are also increasingly using social networks, blogs, apps and digital media to reach their customers.
Post-recession we saw a boom in technology, with higher transaction values and fierce competition in the property industry. This led to multiple players wanting to gain a competitive edge, and start-ups readily having access to funds, producing a perfect ecosystem for technologies to bloom.
A recent survey by CoreNet Global and Cushman & Wakefield revealed that 88% of EMEA corporate occupiers are investing in workplace improvements, with the majority actively addressing technology upgrades. Office management systems and smart buildings are becoming increasingly hi-tech, and systems are becoming simpler to use.
Research from Knight Frank also shows that there is 52m sq ft of office space scheduled for delivery in the next three years. The process for marketing, leasing, selling or managing these spaces can be made far more efficient if companies implement hi-tech search, security and back-of-house systems.
Technology’s support of everyday activities puts more time back into the hands of agents and developers, allowing them to focus on business rather than on administrative tasks.
One lesson we have learned is that the sales cycle for proptech companies is longer than that of other tech sectors, due to the pace of the property industry and its reticence to adapt to change.
Although innovation in technology has to be driven forward, it is our responsibility to avoid forcing change on clients or investors, and instead educate them on the benefits of technology and work with them to provide services that are going to improve the future of the property industry.
Property companies have operated with traditional values for decades, and changes should be made as an evolution, not a revolution. So while they should not be dismissive of technology companies, it is our responsibility to demonstrate why we add value. With increased demand from consumers, we can’t take our finger off the pulse, but we can certainly align our goals with those of our target industry.
Our aim is to increase efficiency, and ultimately the market’s bottom line. If the market is thriving, we are all thriving - and isn’t that really the end goal?
James Morris-Manuel is CCO and co-founder of Virtual Walkthrough
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