CPE Executive Council: Tech & Trends to Focus On in 2024
What should CRE owners, investors and developers be on the lookout for in the coming year? The CPE Executive Council weighs in.
AI? Smart tech? Data? What should those in CRE pay attention to in the coming year? (Hint: You’ll definitely want to look into AI.) The CPE Executive Council shares what they think will be a big focus for 2024.
Covering the bases
Regarding property and facilities management, AI can help with tasks like analyzing building functions and layouts, systems management (HVAC, lighting, data systems, etc.) and organizational tasks. By using AI, property managers can further streamline chores like safety, security and efficiency. And for commercial brokers soon AI could help with generating leads and prospects.
The e-commerce revolution continues to disrupt the retail landscape. Specifically, changes in consumers’ buying habits have affected the commercial real estate industry, both negatively and positively. On one hand, some retailers have shuttered many brick and mortar locations. However, the change benefits the industrial warehouse sector. Regarding technology, commercial real estate technology has adapted, causing a minor revolution in warehousing in relationship to retail. So not only is there a greater demand for industrial warehouses, but there is also a great demand for high-tech solutions in these properties.
Another area of focus is data. In general, data gives better insight into properties for the commercial real estate business process and leads to more informed decisions. This might include data captured by a property manager from building operations via smart systems. At the same time, it could include data purchased from a third-party regarding properties, submarkets, or neighborhoods.
For prospective buyers and tenants, this data informs their buying and leasing choices. For property managers, data helps them to better manage their properties. At the same time, brokers need to stay on top of the latest data for their own sake and the sake of their clients.
And finally, commercial real estate industry works with enormous amounts of digital tenant and property data. Combine this with the IoT, mobile apps and digitally based solutions, it is crucial that cybersecurity in commercial real estate be top-notch. After all, no one wants to get a message from their landlord, property manager, or broker stating that their sensitive information has been compromised. —Doug Ressler, Manager, Business Intelligence, Yardi
AI will receive the most attention as a real and exciting technology. The reality is AI is best used if it is embedded into other technology platforms and processes. AI, if embraced, will drive efficiency and deliver on targeted solution sets. This is where innovators and ideation professionals need to focus. —Mark Rose, CEO, Avison Young
The AI buzz has affected the markets and will affect lives. But it seems not to have touched the CRE sector YET. I think we will see virtual leasing of apartments, virtual inspections of buildings, management of energy and space in office and retail and even hospitality check-in change within three years. It’s where the bulk of jobs are in our industry. —Shekar Narasimhan, Managing Partner, Beekman Advisors
Note from the editor: Interested in joining the CPE Executive Council for a chance to be featured in upcoming articles? Email Editor-in-Chief Jessica Fiur.