Harnessing the power of real estate technology
While the potential of technology to transform real estate operations, aid decision-making and provide competitive advantage is being recognized, many companies are unsure which solutions to prioritize for adoption, how to extract maximum value from their technologies and how to successfully integrate legacy tech with new tools.
Our latest research is informed by the findings of a global survey of over 1,000 decision-makers across 10 markets globally and insights from JLL’s own team of technology experts. We identify the key challenges companies face today and highlight best practice, drawing on the experience of the industry’s most successful tech-adopters.
Perception of technology is shifting from cost center to strategic value driver
While efficiency improvement and cost reduction have been the focus to date for real estate investors, there is a shift towards technologies that support value creation and risk management. Over the next three years, investors will be focusing on solutions that directly support revenue generation, risk management and underwriting capabilities. Digital infrastructure and building automation technologies are also seen as priority areas.
Our survey highlights a disconnect between tenant expectations and landlord plans for future technology enhancements. Aligning technology offerings with occupier needs, particularly for experience management features, will be crucial for investors to maintain a competitive edge.
Bridging the gap between ambition and successful proptech adoption
Despite boardroom ambition, many companies are still in the early stages of their technology adoption journey. Only 13% of our respondents consider themselves to be early tech adopters, actively piloting or deploying new technologies. 32% would like to do so in the near future but lack a clear strategy, skills or budget for effective deployment.
While companies are increasing their investment in real estate technology, they often struggle to realize its full potential. Fewer than 40% believe their existing tech programs have been highly successful and 80% feel that they are not extracting enough value from the technologies they're already using.