{"id":1004564317,"date":"2022-01-26T19:40:30","date_gmt":"2022-01-27T03:40:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004564317"},"modified":"2022-12-08T17:48:31","modified_gmt":"2022-12-09T01:48:31","slug":"are-you-making-the-most-of-your-real-estate-tech-dollars","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/are-you-making-the-most-of-your-real-estate-tech-dollars\/","title":{"rendered":"Are You Making the Most of Your Real Estate Tech Dollars?"},"content":{"rendered":"

One big topic that has emerged from Deloitte\u2019s<\/strong> 2022\u2019s real estate industry outlook<\/a> is technology. There is a sense of optimism around what CRE companies are doing, what they\u2019re thinking about, and what\u2019s likely coming. While there is no shortage of challenges, what lies ahead is as intriguing as ever.<\/p>\n\n\n

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READ THE GUIDE<\/a><\/div>\n<\/div>\n\n\n

Before we deep dive into technology, I\u2019d be remiss in not pointing out that the leaders we\u2019ve surveyed are an optimistic bunch. I\u2019ll spare you all the details, but almost all believe that revenue will be up slightly or significantly in 2022. And, as I pointed out at the end of last month\u2019s column<\/a>, the good news is that respondents plan to spend some of that increased revenue on technology\u201410.3 percent more this year than in 2021.  <\/p>\n

\"\"<\/a>

John D’Angelo<\/p><\/div>\n

But, with inflation eating up some of that increased revenue, is it sufficient that the industry\u2019s technology spend this year is up by mid-single digits? Forty-one percent of respondents are considering or committing to innovation initiatives, compared to the 22 percent planning to suspend or postpone those plans. Another way to look at it: For every participant that is putting innovation on hold, two are planning or carrying out a strategy. If you\u2019re keeping score at home, that leaves 37 percent of respondents who are neither thinking about nor rejecting the need for innovation.<\/p>\n

And that leads to the next question: Where will those scarce dollars be spent? This is the most interesting piece to me and is also confusing at first. What we\u2019re seeing develop is a kind of peloton of those who have already modernized their technology infrastructure. <\/p>\n

Fifteen percent of companies report that they\u2019re all the way there with respect to a cloud-based technology infrastructure and foundation of data that they say is in \u201cgood\u201d shape. Among those survey participants, the budget is going toward AI, data analytics and RPA. For the 60 percent of respondents who said that they\u2019re \u201cat best\u201d on the journey to building a modernized core systems and technology infrastructure\u2014unsurprisingly\u2014investment is focused on migrating to the cloud. It appears to us that the technology peloton comprises those who have already invested in data and the cloud, who are moving on to AI and getting leverage from the data foundation they\u2019ve built in the form of advanced analytics.<\/p>\n

In a positive trend, 51 percent of respondents tell us that they\u2019re in the process of identifying potential applications of predictive analytics or that they\u2019re in the early, or experimental stage. But only 22 percent said they\u2019ll be making a significant increase in data analytics spend, which is puzzling. I\u2019m encouraged by the apparent strong interest in AI and analytics but perplexed by the lack of actual investment. <\/p>\n

Perhaps the most interesting and puzzling result from the survey was the apparent high interest in blockchain-based initiatives. When I wrote about blockchain<\/a> for the September 2021 digital edition of CPE, I expressed surprise that so little seemed to be happening in real estate, despite several promising applications. At that time, I posited that it\u2019s not a matter of if, but when.<\/p>\n

This year, respondents seem to be saying that \u201cwhen\u201d is sooner rather than later. I hope that\u2019s right, as I think the application of blockchain can reduce a significant amount of friction in back-office processes and the ways we capture and exchange data. And that would be a very good thing for our industry.<\/p>\n

\n

John D\u2019Angelo<\/em><\/a> is a managing director with Deloitte and is the firm\u2019s real estate solutions leader, designing solutions to address client challenges and push the industry forward. With over 30 years of experience as a management consultant to the global real estate industry, John has helped some of the biggest names in real estate leverage technology and use data to optimize and transform their operations.<\/em><\/p>\n

Read the February 2022 issue of CPE<\/a>.<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Spending on digital tools is up, but budgets may not be focused on the right strategies. <\/p>\n","protected":false},"author":1119,"featured_media":1004566898,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[39191,1521],"tags":[32782],"class_list":["post-1004564317","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-cfo-corner","category-digital","tag-deloitte"],"acf":[],"yoast_head":"\nAre You Making the Most of Your Real Estate Tech Dollars? - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Spending on digital commercial real estate tools is up, but budgets may not be focused on the right strategies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/are-you-making-the-most-of-your-real-estate-tech-dollars\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are You Making the Most of Your Real Estate Tech Dollars?\" \/>\n<meta property=\"og:description\" content=\"Spending on digital commercial real estate tools is up, but budgets may not be focused on the right strategies.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/are-you-making-the-most-of-your-real-estate-tech-dollars\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-27T03:40:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T01:48:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/01\/isometric-g7a8473d62_1280.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"John D'Angelo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/are-you-making-the-most-of-your-real-estate-tech-dollars\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/are-you-making-the-most-of-your-real-estate-tech-dollars\/\",\"name\":\"Are You Making the Most of Your Real Estate Tech Dollars? 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