Melanie Leech, Chief Executive of the British Property Federation, tackles if affordability is a barrier to tech adoption in Locale's 'Tech Equity' paper. Slowly but surely, emerging technology has begun to play a greater role in how buildings are designed, built and operated – but despite the progress we are still at a nascent stage of industry-wide adoption, and with that brings significant opportunity to digitalise and enhance assets of all sizes across the country.
From technology innovations offering the capability to help solve critical industry pain points such as the decarbonisation of our buildings – particularly relevant for retrofit buildings as 80% of 2050’s UK real estate has already been built; to increased operational automation, better analytics enabling data-driven decisions; ‘digital twins’ of buildings as a tool to improve design and operation; and supporting the evolution of a more flexible hybrid workplace – PropTech has the potential to revolutionise how we interact with our buildings.
While the benefits of the real estate industry embracing and adopting smart building technologies are compelling, and can lead to more effective asset-level operations, energy efficiency and a better overall user experience, we must ensure that the costs for implementing the right tech-led solutions are not prohibitive.
As technology innovation marches forward, we have a responsibility to do what we can so that no building is left behind and is able to benefit from cutting-edge advancements, regardless of an asset’s scale or location.
While affordable technology is a critical consideration in increasing adoption in real estate, cultural shift in mindset is also required. Decision makers in real estate are often not as strongly incentivised for innovating as they are rewarded for hitting commercial targets, and innovation often sits alongside people’s day jobs rather than being integrated into them.
The worlds of technology and property often move to different rhythms, but as their interrelation deepens, we must make sure we have the culture and policies in place to reap the rewards of the innovations shaping the future of our built environment.
We should champion the people trying to make positive changes to the long-term success of our buildings through technology and empower them to make material improvements as part of their core responsibilities.
In dealing with long-life assets and customers over decades in some instances, the property industry is sometimes seen as inherently conservative in nature. And this stability isn’t always conducive to innovation as you can easily afford to do what has always been done. With change comes disruption to often embedded and familiar processes – but being alive to the tangible benefits can help this transition to a more digitally-enabled world.
We must also reset the common misconception that technology is an IT issue, not a commercial one, as the right solutions can bring unparalleled long-term value to owners and users. Many property companies still aren’t sure where to begin to digitally transform their businesses and their buildings, and consequently there is still not enough collective expertise for the property industry to innovate in an ‘open source’ way.
Therefore, collaboration across the industry is key to driving forward technology implementation. The BPF’s Tech and Innovation working group is keen to help level the playing field by continuing to share best practices, new innovations, and successful deployments. And by working together and sharing our increasing knowledge, we will be
in a better place to find affordable solutions to the many shared challenges facing property managers and owners.
As digitalisation continues to develop across the world, technology’s impact on our sector increases alongside it. We need to ensure we capitalise on the many opportunities that technological innovation can bring for real estate while effectively managing the risks that arise from our transformational digital journey.
By aiming for the inclusive and accessible application of technology in our buildings, we can create the groundswell of industry-wide support we need to propel us towards a more tech-enabled future, creating a more efficient, sustainable and equitable industry for everyone in the process.