The internet has enabled technology to infiltrate all areas of our lives. However, real estate is a relatively late adopter where tech is concerned, though we have seen this shift of late and we’re learning to embrace it.
As both an asset and an industry, property isn’t impervious to the improvements made possible by digitisation. Proptech has grown in peaks and troughs, usually associated with recession (Frick 2019). Block and Aarons (2019: 51) noted that the 2008 crash led to a boost in Proptech due to companies needing to find a competitive advantage and maximise savings. Could we be in for the same post-COVID?
Thanks to the rise of applications, the accessibility of cloud storage and the investment within the sector, the new decade we are entering is the start of a new understanding of Proptech. As the industry’s use of technology becomes more sophisticated, it makes a difference to the way businesses work, creating real value for customers.
In the commercial property sector, the adoption of technology is being driven by an increasing realisation among landlords that their customer is not just the tenant, but in turn their employees – the occupiers of the space.
Properties need to be modernised in order to be attractive to not only future managers and investors, but a new generation of staff who focus on the quality of the workplace and tools available when choosing an employer, with tech the potential key to success.
The buildings in which tech solutions have been implemented are perceived to be an attractive workplace, because they are better adjusted to the needs of the future generation of workers.
Thanks to the automation of many processes, operational costs decrease and employee effectiveness increases. Digitising everyday processes increases the value of the asset intangibly. MAPP has used technology to digitise its entire ecosystem, improving efficiencies and providing management transparency into the performance of its entire property portfolio.
Read more from Karen McCarthy, head of client services at Locale, here.