As with many other industries, the commercial real estate (CRE) space has seen digital innovation and technology adoption continue to grow over the years, especially lately. By 2019, according to Deloitte’s annual survey, tech had spread through virtually the entire continuum of the CRE industry, but its adoption was still moving relatively slowly compared with other businesses. In 2020, hastened by the global Covid-19 pandemic, CRE developers shifted their digital innovation and adoption focus into overdrive.
Along with continuing the acceleration of technological growth in 2021, the PropTech sector enjoyed rapid adoption of tech, as well as corporate strategies to scale technology programs.
Here are three ways that tech can help CRE developers increase their productivity in 2022:
Data analytics is the way of the future
A recent survey by EY identified data analytics as the most important tech tool in CRE, with 92% of respondents stating that they are either currently planning or already focused on the adoption and integration of data analytics tools. Deloitte’s survey found that artificial intelligence (AI), robotic process automation, cloud and digital channels will be among the most adopted technologies.
Tech innovation has made it possible to not only collect large amounts of data, but also to render that information actionable. In order to make the best decisions possible, customers should have access to data analytics, which provides them with an understanding of current market trends and allows them to be able to make more accurate forecasts. Big data can reveal trends within audiences, determine pain points and more accurately triangulate on specific goals.
Deep data analytics forwards valuable insights for smarter investment decisions and more sophisticated forecasts, leading to better decision making across the entire CRE spectrum.
Keep looking up
Construction is one of the top growth industries for drone adoption, according to Insider Intelligence, which predicts it to become a $28.3 billion market. Drones are revolutionizing commercial development in a number of significant ways.
The little flying machines are capable of providing detailed 2D and 3D images of construction sites by utilizing state-of-the-art cameras and mapping technology to create aerial maps, take measurements and give context to a project within the community. Using drones to virtually visit construction sites took off during the pandemic, and has now become a business standard, offering impressions often exceeding those of in-person visits.
The global construction drone market is predicted to witness significant growth through 2028. North America is expected to maintain the dominant position it now holds in the market, accounting for approximately 37% share in terms of value, followed by Asia Pacific and Europe, according to Coherent Market Insights.
Tech helps keep project cost down
In the CRE industry, developers are very dependent on project budgeting software, and this has increased through the pandemic. The best solutions in this space grow in lockstep with tech, and should give the project perspective as much attention as the financial perspective. A state-of-the-art solution allows the software modules or functionality to be project aware, with each module providing the necessary project perspective to complement the general ledger perspective.
Nearly all job-costing software emphasizes the subcontractor or general contractor perspective where the detail level drives the reporting. But success in the developer market comes from its ability to go beyond the details and show management top-level project status and the various detail levels that support it. The software solution must address the complete life cycle of a real estate asset: from project inception to project completion, and from pre-development to property management, in order to minimize budget debt and maximize profit, efficiency and client satisfaction.
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