CoRETech 2023 provided a pulse-check on the evolving landscape of PropTech, as industry leaders convened to share insights and concerns that are shaping the trajectory of smart buildings and corporate real estate. I caught up with industry leaders at the forefront of these discussions to understand the trends shaping our industry.
- The Pitfalls of Complacency:
The risk of organisations becoming complacent in the face of matured PropTech is huge. A key player in the US Workplace Technology space highlighted the potential consequences of scaling back deployments or halting innovation during economic cycles, cautioning that we quickly fall back into a state where threats have evolved, and organisations find themselves lagging behind. This applies to innovation across all elements of the industry, from tech to talent, and poses a real risk in terms of progress.
“One of the things that keeps me up is organisations getting complacent. We have reached a level of maturity in PropTech that is far beyond what we had a few years ago, but the threats are still evolving. With the current economic cycle it’s possible that organisations may choose to scale back their deployment or stop innovating. This may place us in the spot where we were 5-10 years ago where threats are more evolved and organisations are lagging behind again.”
- Real-Time Utilisation Takes Center Stage:
Brett Fisher, Deloitte’s Head of Real Estate, emphasised the gap between visionary concepts and marketplace readiness. Noting the demonstration of real-time utilisation measurement at this year’s show, showcasing its value for portfolio decisions and enabling instantaneous decision-making. The industry seems to be catching up to ideas that were once ahead of their time.
“I continue to think that sometimes the marketplace isn’t ready for some of the ideas and concepts industry visionaries are pushing, and sometimes it takes a few years for things to catch on. We’ve been talking about sensors for years, but at this year’s show, the value of measuring real time utilisation was demonstrated by multiple organisations – both in terms of making portfolio decisions, but also enabling real time decision making.”
- Paradigm Shift in Smart Buildings:
Industry stalwart and smart buildings expert, Bonnie Manter, said “there is a smart building paradigm shift today.” Drawing attention to the language used by Emmanuel Daniel and Kay, she emphasises the importance of adapting buildings to human behaviours in the context of sustainability, efficiencies, and societal shifts. This marks a fundamental shift in the approach to smart building design and functionality, which features heavily as a consideration when looking at the discussion around AI, and organisation’s approach to growth plans and hiring strategy too.
- The Paramount Role of Data:
We also spoke with Directors across the Smart Building Technology space, who underscored the critical role of data as the foundation for any smart building initiative. “Data is the utmost critical component before anything else. Great data = Ability to apply better AI applications” said one, emphasising that great data sets the stage for effective AI applications. The challenge lies in obtaining standardised data, a hurdle even major players face. This insight reinforces the notion that quality data is paramount for successful AI implementation.
- The Crucial Relationship Between Data and AI:
Jeremy Richmond, VP of DB Engineering, echoed the sentiment on data, emphasising its unparalleled significance. He highlighted the challenges in standardising data, particularly in operational telemetry, and how it significantly impacts Net Operating Income (NOI). Additionally, he highlighted the need for clearer messaging on AI’s role in operations, reinforcing the idea that understanding AI’s practical applications remains a crucial aspect.
“Data is everything. The foundation of it drives every outcome. Getting it standardised is hard. Even the big guys struggle sometimes. Going after data in ERP is easier but it’s not operational telemetry and has minor effects on NOI compared to building data. AI needs better messaging. It’s been around a long time, but we still need to understand how AI will be leveraged for operations.”
CoRETech 2023 sets the stage for industry leaders to raise their voices and address current challenges and envision the future of PropTech. The insights shared highlight the importance of avoiding complacency, embracing real-time utilisation, acknowledging paradigm shifts, and recognising the pivotal role of data and AI in reshaping the smart building landscape. As we digest these key trends, it’s clear that the path forward involves a harmonious integration of technology, data, and human-centric approaches to ensure we remain on a sustainable path to a smarter world.
