Corporate real estate tech or CRE tech is forcing change among today’s CRE providers, and the future is bright and full of opportunity.
Those working in CRE face many challenges, ranging from dealing with temperature fluctuations within a building, optimizing its existing systems and making sure tenants are happy. However, modern technology, specifically automated CRE tech, has the potential to change the face of standard CRE amenities and processes. By some estimates, predicts Smart Cities Dive, Europe and America will account for more than 50 percent of the world’s smart cities within the next ten years. This means American CRE providers and managers need to consider implementing a system today. Of course, CRE managers can help gain executive-level support by considering the top ways CRE tech will change the game soon.
CRE Tech Enables Better Space Utilization
Think about how today’s CRE technology applies to CRE management goals. It can help reduce overhead, monitor employee performance, find issues causing poor tenant satisfaction and more. However, the future applications of CRE tech might include optimizing space use. A company may be able to identify better floor layouts to put more product in front of consumers or reduce “hot” zones in their units. As a result, the overall climate of the unit improves and needs less energy to remain stable and comfortable. Moreover, shopping experiences among customers increase, promoting successful business-customer and tenant-CRE provider relationships.
Tenants Are Willing to Pay More for CRE Tech
Millennials are on track to make up 75 percent of the workforce by 2030, yet many CRE providers and managers continue working in a Generation X mindset. In other words, buildings may lack the basic infrastructure and technology to offer services and amenities that have become standard among millennials.
Building features, like wireless control, thermostats, automated door locks, utility monitoring, and system diagnostic tools are a pre-requisite among today’s CRE tenants. Not having these technologies could lead to low occupancy rates and high tenant turnover. However, tenants are willing to pay more for spaces that offer these amenities, allowing for better workflows, collaboration, recreational opportunities and adherence to sustainability goals.
CRE Tech Has a Rapid Return on Investment
Rapid return on investment (ROI) is a key benefit of CRE tech. ROI risk has been a major barrier to CRE managers and providers looking to implement advanced, smart building solutions, reports Bruce Duyshart of Realcomm. However, analytics systems and easy-to-use dashboards, including mobile dashboards, are helping CRE providers see actual ROI predictions in real-time. Also, future applications may reduce risks inherent in any business, like slips and falls, poor equipment function, and risk of fire or other damaging events. Therefore, insurance premiums decrease, allowing for additional re-investment into a building.
Automated CRE Tech Using Sensors Will Grow
Thanks to decreasing sensor and CRE tech costs, especially considering value-added services with energy-management-as-a-service (EMaaS) systems, adoption barriers to CRE tech will continue to fall, reports the Deloitte University Press. As a result, buildings using smart devices and automated systems will see higher occupancy rates, reductions in overhead spending and better experiences among tenants.
The Big Picture
Energy management can save both tenants and CRE providers big bucks when implemented properly, and standard CRE tech is exactly what the next generation of tenants expect. Leverage these future benefits to gain stakeholder support, and give your company the tools it needs to draw more tenants and reduce turnover alike.