TORONTO — Altus group, a provider of software, data solutions and independent advisory services to the global commercial real estate (CRE) industry, recently released its latest annual Altus Group CRE Innovation Report, providing an outlook on technology trends and highlighting the current digital transformation impacting the global CRE industry.
According to the report, which is based on a global survey of 400 CRE executives, the industry has reached a tipping point as PropTech adoption hits a critical mass threshold. For the first time since Altus Group began conducting this annual research five years ago, a majority of CRE leaders now fully recognize the disruptive impact of PropTech, illustrating the shift to an acknowledgement that many advanced technologies can potentially solve their current challenges, states an Altus Group release.
Eighty-nine per cent of CRE executives said significant consolidation is needed for PropTech to more effectively deliver on the needs of the CRE industry, with 43 per cent saying it is already underway or will occur within 12 months.
Other key findings from the report include:
- Sixty-one per cent of CRE executives said online marketplaces will create major disruptive impact on the industry, and the majority of CRE firms have used some type of online marketplace (this includes online lending, online investment and crowdfunding, online leasing and online property exchanges) for a recent transaction and 79 per cent intend to increase use in the future;
- Seventy-five per cent of CRE leaders said the impact of automation will eliminate jobs however a majority also believe automation presents an opportunity to introduce new types of jobs within the industry (71 per cent) and shift jobs towards higher value-add tasks (67 per cent);
- Eight out of 10 CRE firms now have a Chief Data Officer or equivalent senior executive who oversees their organization’s data strategy and data governance, compared to only 44 per cent four years ago;
- Almost half (45 per cent) of CRE teams are spending 15 per cent to over 25 per cent of their time managing and organizing data (equivalent to two to three months of the year);
- In a majority of key areas related to data management, CRE executives are facing increased challenges when compared to five years ago;
- A large majority of CRE executives (87 per cent) believe global data standards for commercial real estate will eventually be adopted, however, numerous obstacles were identified including a lack of standardized data definitions on a global scale, and privacy and data protection regulations; and
- 50 per cent of executives believe 5G wireless will create major disruptive impact on the CRE industry with 81 per cent saying it will support increased adoption and use related to smart city development.
“CRE continues to rapidly accelerate its digital transformation and despite the growing complexity stemming from the proliferation of data, the industry is clearly shifting from a stage of ‘trial and testing’ to one of practical innovation to solve their current challenges today,” said Bob Courteau, CEO, Altus Group, in a statement. “At the same time, continued automation and significant PropTech consolidation will both have a major impact and deliver considerable opportunities for the industry.”
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