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Business has only Two Functions-Marketing and Innovation
By Sylwia Pędzińska, Senior Partner, Innovation & Knowledge, Colliers International
Tenants' expectations, customers, and employees drive prop-tech trends in real estate markets
Commercial real estate market is typically foreseen as a conservative. Properties have a long life cycle, and their development is costly; thus, implementation and adoption of new technologies take time. However, for the last few years, we have seen an increasing number of innovations in this market. It is a result of changing tenants' expectations, their customers, and employees. At the same time, developers are starting to appreciate the usage of some technologies.
For companies like ours (real estate agencies), it's essential to know what kind of technologies are there. Tenants and landlords are more often asking questions about them to understand how they influence their processes, whether or not they work, their advantages and disadvantages, pricing, and possible options. At the same time as an advisor, our work is based on proper usage and interpretation of data. Thus business intelligent (BI), predictive analysis, geolocation, and in the nearest future, artificial intelligence (AI) is taking a huge role in supporting the everyday businesses. Depending on the sector (industrial, retail, or office), using technologies and their adoption vary.
Innovations and technologies in the development phase
Starting from the beginning of the building cycle.
“Business intelligent, predictive analysis, geolocation, and in the nearest future, artificial intelligence is taking a huge role in supporting the everyday businesses”
Comfortable life in office buildings
The other trend we can observe in the building also driven by the tenant are all technologies which are supposed to make tenants lives more comfortable or help them efficiently run their offices. In this category, we have software which helps understand how employees are using office space, book the room or parking space, or create a community within the building. Beacons or red light cameras are used to check office space usage or to understand shopping centre customers behaviours. Even from Wi-Fi, you can get data-driven insights like occupancy trends, space utilization rates, potential cost savings, and more. It's important to mention that software for office managers, parking space management systems, community creation apps, and geolocation are used to help location decisions in retail, security systems based on face recognition in part replacing humans.
All functionalities in one app?
There are a lot of available software, thus sometimes it’s hard to pick. That's why it's essential to listen to tenants needs. And what we hear more and more continually is that they don't want to have several apps to use. They want all functionalities with easy access. I think that in the nearest future, we will start to see apps using voice recognition technology for tenant apps. The same as we see the adoption of this technology in retail.