Over the past 15 years, digital radicalization has been a trendy expression circumnavigating the Commercial real estate business. According to a Proptech study, in 2018, venture capitalist globally invested $8.3 billion, and from 2015-2019, an increase of 1072% in investments in property technology in the real estate was seen.
Jim Berry, Vice Chairman, and US real estate leader, Deloitte said that ”The pandemic has certainly created unique challenges for the real estate industry. It is important to recognize that while the pandemic served as an accelerant, it did not change the already occurring trends. As memorable as 2020 events have been, 2021 and beyond will be telling, as certain CRE companies begin to step into opportunities to better align their operations with those of the occupier and end-user.’’
While continuing the value proposition of CRE, Berry said that Deloitte sees “purpose, location and analytics.”
He said, “While the pandemic was an eye-opener, we see it as an accelerant of existing trends. It is telling that 56% of CRE respondents to our 2021 CRE Outlook survey said that the pandemic exposed shortcomings in their organizations’ digital capabilities. Only 40% of respondents said their company has a defined digital transformation roadmap.
John D’Angelo, US real estate leader, Deloitte states that COVID-19 has largely impacted Commercial real estate, with a rise in following technology trends in 2021.
- Digital Engagement
With a rise in pandemic worldwide, there has been a large influx of digitalization that provides remotes services, while ensuring a protective and healthy environment. This digitalization has largely overtaken the traditional processes by automation.
- Robotic process automation (RP)
D’Angelo states that real estate has been relatively slow at adopting new technologies. For example, Robotic process automation (slow adoption of automation in commercial real estate). Robotic process automation is going to play a vital role in digital transformation efforts of commercial real estate companies.
The overall success of commercial real estate companies, after COVID-19, depends prominently on the extent of their people’s success in the digital environment.
- The upsurge of digital twins
The commercial real estate industry creates and possesses data in large amounts. This data, including the data of the Internet of Things and building itself, can be used to improve operations and efficient customer experiences by identifying and minimizing the issues.
- Data analytics
With a rapid change in demand and behavior patterns, data-driven decision making will continue to grow. With the help of these data analytics, commercial real estate companies comprehend and respond to the risks and opportunities that these modifications will have. He said, “Trying to do this by instinct or gut simply doesn’t work effectively in this environment.”