Tech or Be Left Behind
The CRE Imperative
By Robert Kroon
The commercial real estate (CRE) sector stands at a crossroads.
While traditionally known for its brick-and-mortar foundations, the industry's future hinges on its ability to embrace technological innovation. This is not merely about adopting existing solutions, but about actively researching and shaping the technologies that will define tomorrow's built environment.
Therefore, establishing robust technology research staff is no longer optional—it's essential for survival and success.
Unfortunately, quantifying the exact percentage of CRE organizations with dedicated technology research teams remains challenging. Anecdotal evidence suggests that while awareness of technology's growing importance, dedicated research efforts are still lagging. Many firms rely on ad-hoc assessments or external consultants, which can be insufficient for keeping pace with the rapid changes.
The Case for Dedicated Tech Research
A dedicated technology research staff offers several crucial benefits:
Identifying and Evaluating Emerging Trends: A dedicated team can proactively monitor and analyze emerging technologies, assessing their potential impact on the CRE sector. This includes evaluating software platforms for property management, data analytics tools for market analysis, and innovative solutions for tenant engagement.
Driving Innovation: A dedicated research staff can foster a culture of innovation within the organization, encouraging experimentation with new technologies and developing in-house solutions to address unique challenges. This can lead to competitive advantages and new revenue streams.
Mitigating Risks: By staying ahead of technological advancements, organizations can better anticipate and mitigate potential risks, such as cybersecurity threats, data breaches, and disruptions to traditional business models.
Attracting and Retaining Talent: In today's competitive job market, tech-savvy professionals are in high demand. Organizations that demonstrate a commitment to technology research and innovation are more likely to attract and retain top talent.
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DC Power: A Prime Example
One compelling example of a transformative technology ripe for exploration by CRE research teams is the adoption of direct current (DC) power distribution within buildings. While alternating current (AC) has been the standard for decades, DC power offers several advantages:
Increased Efficiency: Many modern building systems, such as LED lighting, computers, and electric vehicle chargers, inherently operate on DC power. Converting AC to DC for these systems results in energy loss. DC power distribution eliminates this conversion, leading to significant energy savings. Avoiding conversions typically saves 30% of energy costs.
Integration with Renewable Energy: On-site renewable energy generation, such as solar panels, produces DC power. DC buildings can seamlessly integrate with these sources, maximizing the use of clean energy and reducing reliance on the grid.
Fault-Managed Power: Advanced DC power systems incorporate fault management capabilities, enabling rapid identification and isolation of faults, improving safety and reliability.
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Investing in the Future
While the initial investment in establishing a technology research staff may seem significant, the long-term benefits outweigh the costs. By proactively embracing technology and fostering a culture of innovation, CRE organizations can position themselves for success in the rapidly evolving real estate landscape. It's time for the industry to recognize that technology research is not just an expense—it's an investment in the future.
In conclusion, while precise figures on the prevalence of dedicated tech research teams in CRE are limited, it's clear that such efforts are crucial for staying competitive. The industry must prioritize establishing these teams to navigate the technological revolution and unlock the full potential of innovation in commercial real estate.
