Investment in technology among commercial real estate giants was up 821% from 2011 to 2015 according to EY. The spectacular pace of investment means that in order to remain viable and competitive in the real estate industry, you need to be making smart technology purchases or prepare to lose out to your peers.
But, not all technology is created equal. Commercial real estate companies should not be upgrading just for investment’s sake. It’s critical for companies to look at key areas changing the marketplace and invest in smart solutions that can decrease risk, grow margins, and help you predict fluctuations to pounce on opportunities or pivot on strategies as required.
In some ways, the commercial real estate industry is at an advantage. Unlike sectors like life sciences, technology investment for commercial real estate companies is comparatively nascent. The good news is the commercial real estate sector may not be weighed down by legacy systems that are clunky and difficult to use compared to newer, more nimble, user-friendly solutions. But companies should take heed: the shiny, pretty tech tool isn’t necessarily going to give you a true competitive edge.
So what’s a smart, forward-thinking real estate company to do? Think about technology solutions that can fundamentally grow your bottom line. Technology won’t necessarily build your business unless it is effectively linked to corporate goals, budgets, and planning. Invest in solutions that can leverage large amounts of data, quickly, for better decision making.
The explosion of big data is one particularly rich, yet untapped goldmine. There’s so much data out there, but few companies are able to leverage all that data in a way that grows their bottom line. Imagine if you could use data for pre-construction analysis to engineering and enhancing the end-user experience? Big data could be used to capture traffic patterns in potentially large areas, overlaying the value of buildings, land, etc., with demographic patterns. Big data could be used for efficient building management, which can affect ROI, but also deliver a better customer experience. And a better customer experience may mean you can charge more per square foot.
At Hubble, we believe the commercial real estate industry has an undeniable opportunity to integrate business objectives and budgets with real-time data, streamlined analysis, continuous forecasting and planning, and sophisticated reporting tools. But most importantly, commercial real estate companies would be well served to invest in technology that allows them to predict long-term trends, capitalize on timely opportunities, and stave off potential losses when the market fluctuates.
If you are a commercial real estate company using Oracle EBS or JD Edwards, schedule a meeting with a Hubble representative to learn more about how we help real estate entities grow their empire.
Original referenced source, "Disruptive Forces Shaping the Real Estate Sector" provided by Ernst & Young.