In the off chance that you didn\u2019t memorize my predictions about the CRE digital trends to watch from 13 months ago, here they are:<\/p>\n
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- Digital Twins <\/em><\/li>\n
- End User Direct Engagement<\/em><\/li>\n
- Data & Analytics<\/em><\/li>\n
- Digital Maturity<\/em><\/li>\n<\/ul>\n
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<\/a>John D’Angelo<\/p><\/div>\n
While I still believe each one of these digital trends is important, I\u2019ve really only seen somewhat widespread progress in data and analytics, and even that hasn\u2019t made the sort of progress across our clients that I\u2019d have hoped to see in the current year. But there does seem to be a high degree of widespread understanding that data matters, even if only to help drive operational efficiencies. Whatever the driver, several clients have upped their game with respect to data hygiene, overall governance, analytical skills, tools and outputs. Bravo. Those who haven\u2019t made progress over the past year (or years) and are just now planning to invest in data and analytics capabilities (or, worse, aren\u2019t in good shape and don\u2019t have plans to invest) are likely falling behind their peers.<\/p>\n
As for investment in digital twins, direct engagement with end users of space (occupants, residents, shoppers, patients, students, etc.) and a rise in overall digital maturity, there are examples and pockets of progress, but\u2014and I could just be missing it\u2014I\u2019m not seeing widespread adoption or the sort of progress we expected for each of these trends. Having said that, I haven\u2019t lost optimism or belief in the fundamental value of each. I think it\u2019s just a timing and understanding issue.<\/p>\n
The Twin Thing<\/h2>\n
For digital twins, we didn\u2019t see the breakthrough year I expected, but interest in smarter and more-connected buildings seemed to increase in 2021. We did help clients with and witnessed some interesting and important applications of digital twins for buildings and cities in 2021, just not at any volume you\u2019d classify as \u201cbreakthrough.\u201d But looking to this year and the years ahead, there\u2019s reason to believe that we\u2019ll see more investment in smart building technologies as companies increasingly believe that sustainability is important for keeping assets relevant, attracting tenants and maintaining values. In Deloitte\u2019s 2022 CRE Outlook<\/a>, survey respondents indicated that sustainable\/energy-efficient properties are the most valuable enhancement CRE companies could make to improve the tenant experience.<\/p>\n
As for the other two trend predictions\u2014direct engagement with end users of space and overall increase in digital maturity\u2014I think this is, again, a timing thing. I would have expected, at a minimum, direct engagement (app-enabled functionality) for office occupants to be key to returning to the office in 2021. I think there are still compelling reasons for great app-enabled engagement, but as COVID drags on, the return to office is happening much more slowly than expected (a year ago) and few CRE organizations are going to invest if it\u2019s not required \u2026 and it simply hasn\u2019t been required. With respect to an increase in overall digital maturity, recent research<\/a> suggests that tech spend will be up roughly 10 percent in 2022 relative to 2021. While positive, I\u2019m skeptical that this increase will be enough for CRE to close the tech gap and significantly move the dial in overall digital maturity. I hope my skepticism turns out to be unfounded, but I doubt it will.<\/p>\n
\n - End User Direct Engagement<\/em><\/li>\n