{"id":1004691766,"date":"2023-11-29T15:47:10","date_gmt":"2023-11-29T23:47:10","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004691766"},"modified":"2024-10-03T00:06:37","modified_gmt":"2024-10-03T08:06:37","slug":"deloittes-2024-cre-tech-takeaways","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/","title":{"rendered":"Deloitte\u2019s 2024 CRE Tech Takeaways"},"content":{"rendered":"

In the November column<\/a>, I promised to talk about the technology findings from Deloitte\u2019s annual CRE outlook. The company conducts an annual survey of commercial real estate firms and compiles and publishes the results. This year, Deloitte surveyed 750 global real estate owner, operator and investor company CFOs from around the globe and asked questions about growth prospects to worries to technology trends.<\/p>\n\n\n

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READ THE DIGEST<\/strong><\/a><\/div>\n<\/div>\n\n\n

Consistent with general pessimism for revenue in 2024, respondents indicated an unsurprising conservative position with respect to manageable expenses. Having said that, 61 percent of those surveyed reported they are in whole or large part dependent on legacy technology infrastructures that may have difficulty interacting with modern digital solutions.<\/p>\n

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READ ALSO:<\/strong> Will AI Take Over CRE?<\/a><\/p>\n

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The good news is that we\u2019re seeing a sensible shift of those who reported that they are fully dependent on on-premises legacy systems\u2014only 4 percent this year, compared to 8 percent last year\u2014and we\u2019re seeing encouraging movement of companies in the process of migrating to modernized systems.<\/p>\n

Aging tech, aging sector<\/h2>\n
\"John<\/a>

John D’Angelo<\/p><\/div>\n

A curious finding from this year\u2019s survey is that those who reported being \u201cfully modernized\u201d dropped<\/em> from 15 percent last year to 5 percent this year. At first, I thought something was messed up with our results, and then it dawned on me that there\u2019s a perfectly logical explanation: Respondents realize that the goal posts have moved and the definition of \u201cfully modernized\u201d has and will continue to change.<\/p>\n

And now the really pesky part of the story. According to Forbes, as much as 60 cents of every dollar spent on technology goes to repaying technology debt\u2014modernizing systems and technology platforms that have fallen behind. This is consistent with our observations at Deloitte, both on projects that we\u2019re working on in the industry and those that our clients share with us.<\/p>\n

Case in point, as recently as 2019, spreadsheets are the tool of choice in the industry 60 percent of the time for reporting, 51 percent for valuations and cash flow forecasting, and 45 percent for budgeting and forecasting, according to a study by the Altus Group. If the makers of said spreadsheets knew how mission critical their tool is for our industry, it would likely be much more expensive for companies with real estate industry designation (I won\u2019t tell if you don\u2019t).<\/p>\n

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READ ALSO:<\/strong> When Digital & Physical Converge<\/a><\/p>\n

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Unless we move away from spreadsheets for mission-critical applications, however, we\u2019re going to have a really hard time attracting and retaining digital natives to our industry. The real estate industry continues to employ those 55 years of age and over at a rate that\u2019s roughly twice that of banking and insurance combined (45 percent against 22 percent), according to a Deloitte Center for Financial Services study. And the real estate industry employs those in the 19- to 24-year-old cohort at 4 percent, compared to an average of 24 percent across all industries. Put simply, commercial real estate firms are contributing to challenges in digital adoption due to their approach to generational diversity, outdated job roles, talent processes and culture.<\/p>\n

\"Image<\/a>

Image of target by DNY59\/iStockphoto.com; arrow image by Julia Lemba\/iStockphoto.com<\/em><\/p><\/div>\n

Skipping to the good part<\/h2>\n

There is some technology-related good news when it comes to both survey results and conversations we\u2019re having in the market. Same as last year, respondents reported either being interested in, exploring, actively piloting or in production with solutions that leverage a number of advanced technologies.<\/p>\n

Artificial intelligence and digital twins<\/a> top the list of those advanced technologies being embraced by our survey respondents, a finding that likely surprises few. On the flip side, the bloom appears to be off the metaverse, cryptocurrencies and asset tokenization, with 21 percent, 15 percent and 12 percent of respondents indicating zero interest in these technologies, respectively.<\/p>\n

I\u2019ve said previously that the sheer volume of interest from clients in generative AI<\/a> has been both significant and consistent pretty much throughout 2023, and it shows no indication of slowing down in the year ahead. We didn\u2019t distinguish between AI and generative AI in our questions about adoption of emerging technologies, but only 3 percent indicated no interest in AI, and a whopping 75 percent of respondents reported being somewhere along the spectrum of piloting or being fully implemented with AI-based solutions. Bravo!<\/p>\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 more than 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 December 2023 issue of CPE.<\/em><\/a><\/p>","protected":false},"excerpt":{"rendered":"

CPE columnist John D\u2019Angelo reveals the mixed results of a worldwide survey. <\/p>\n","protected":false},"author":1119,"featured_media":1004691770,"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":[],"class_list":["post-1004691766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-cfo-corner","category-digital"],"acf":[],"yoast_head":"\nDeloitte\u2019s 2024 CRE Tech Takeaways - Commercial Property Executive<\/title>\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\/deloittes-2024-cre-tech-takeaways\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deloitte\u2019s 2024 CRE Tech Takeaways\" \/>\n<meta property=\"og:description\" content=\"CPE columnist John D\u2019Angelo reveals the mixed results of a worldwide survey.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/\" \/>\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=\"2023-11-29T23:47:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-03T08:06:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/11\/iStock-1404750674-Image-of-target-by-DNY59-arrow-image-by-Julia-Lemba.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\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\/deloittes-2024-cre-tech-takeaways\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/\",\"name\":\"Deloitte\u2019s 2024 CRE Tech Takeaways - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/11\/iStock-1404750674-Image-of-target-by-DNY59-arrow-image-by-Julia-Lemba.jpg\",\"datePublished\":\"2023-11-29T23:47:10+00:00\",\"dateModified\":\"2024-10-03T08:06:37+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/deloittes-2024-cre-tech-takeaways\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/11\/iStock-1404750674-Image-of-target-by-DNY59-arrow-image-by-Julia-Lemba.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/11\/iStock-1404750674-Image-of-target-by-DNY59-arrow-image-by-Julia-Lemba.jpg\",\"width\":1200,\"height\":900,\"caption\":\"CDO Stack. 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