RETech Futures Report 2016

7 downloads 139 Views 727KB Size Report
and wide scale transformation, driven by both real estate tech disruptors and a responding wave of ... estate tech platf
RE:Tech Emerging Trends

2016 Futures Report Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

Index

Executive Summary Real Estate Technology Consumer Confidence Index › RETCI Average › RETCI Residential v Commercial Real Estate

Emerging Trends in Real Estate + Tech › Tech is Taking a More - Active Role in Enhancing Brokerage Endeavors › Digitalized Things Are Making Assisted Leasing & Sales Decisions › Renovating the Tenant Experience Is a Digital Priority

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

Executive Summary Real estate has gone beyond the digital tipping point. The sector is gathering momentum towards rapid and wide scale transformation, driven by both real estate tech disruptors and a responding wave of innovation investment with both residential and commercial brokerage firms.

The challenge for real estate is to understand the technologies that are reshaping and will continue to reshape the future and how to strategically invest towards the future. The way residential and commercial brokerages think about management of the built environment is already changing dramatically. Residential and commercial brokerage services are also empowering themselves with technology, allowing them to work more effectively and deviate from traditional working hours and practices. In response to increasing opportunities and threats posed by emerging technologies and competition, real estate companies, including brokerage firms are spending a high proportion of their IT and media budgets on new investment. Since 2014, JLL, Cushman and Wakefield, and CBRE have all redesigned their web and mobile presence along with investing in tech focused programs.

At the same time, real estate tech entrepreneurs are disrupting the market with new products, capturing the hearts and minds of early-adopter consumers and partnering with high-powered real estate services players. Real estate tech enterprises think and act differently to traditional financial services businesses; technology focus and the ability to work outside traditional boundaries makes them super agile. To leverage future technologies effectively and competitively, real estate firms need to decide where they intend to differentiate. This differentiation strategy will create a paradigm to define investment. When this direction is in place, real estate firms will understand their own technology adoption horizon. Currently, real estate firms are pursuing competitive advantage through three paradigms: • • •

Enhancing and extending enterprise efficiency through technological transformation Improving customer propositions for greater revenue Changing culture by providing resources to increase performance

Once the strategic roadmap is in place, real estate firms have a wealth of new technologies to consider…

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

Real Estate Technology Consumer Confidence Index

The RE:Tech Consumer Confidence Index (RETCI) is an indicator designed to measure consumer confidence, which is defined as the degree of optimism on the state of the real estate technology economy that real estate professionals (consumer) are expressing through their activities. The Average RETCI increased by nearly 7.25 percent in 2015 on a seasonally adjusted basis and overall real estate consumer sentiment from real estate professionals. According to the Real Estate Average Power Trend Index (REAPTI), since May 2014, the index decreased by nearly 11.8 percent. The Average RETCI is expected to moderately decrease by nearly 7 percent to nearly 70 percent in Q1 2016 according to the RE:Tech Futures RETCI Index. The indexes for residential real estate demonstrated erratic movement since May 2014, while commercial real estate remained more moderate. The commercial real estate index, which overall remained stable in 2015, overall decreased by nearly 13 percent since May 2014. Residential real estate’s assessment of current conditions was less positive when compared to commercial real estate. residential real estate professionals saying real estate technology business conditions are “good” decreased by nearly 12.5 percent since May 2014. However, during the same time period, commercial real estate assessment decreased by nearly 11 percent, expressing lack of “actionable innovation.” Consumers were less upbeat about the current state of the job market. Those stating jobs are “plentiful” decreased from 22.7 percent to 19.9 percent, while those claiming jobs are “hard to get” increased to 26.2 percent from 24.6 percent. Consumers’ optimism about the future short-term outlook declined moderately. The percentage of residential real estate professionals expecting business conditions to improve over the next 3 months decreased by 7.14 percent to nearly 65 percent, according to the Residential Power Trend Index (RPTI). During the same time, commercial real estate professionals expecting business conditions to improve remains moderately balanced at nearly 80 percent, with no significant movement, according to the Commercial Power Trend Index (CPTI).

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

»

Real Estate Technology Consumer Confidence Index (Average) 100%

90%

80% Average

70%

60%

50% May 2014

November 2014

May 2015

Average

November 2015

Futures 2016

Average Power Trend

Real Estate Technology Consumer Confidence Index (Commercial Brokerage v. Residential Brokerage) 100%

80%

60%

40%

20%

0% May 2014

November 2014 Residential

Emerging Trends in Real Estate Tech

May 2015 Power Trend

November 2015 Commercial

Futures 2016

Power Trend

RE:Tech › Futures Report

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

»

2015 › 2016 Emerging Trends

Tech is Taking a More - Active Role in Enhancing Brokerage Endeavors: Today’s Internet of Things (IoT) devices are more connected than ever. They have an increased ability to supplement many remedial human tasks while reducing the cost of operations and time.

According to a RE:Tech Insight study on Emerging Trends, throughout 2015, the use of real estate tech platforms, including Internet of Things devices, hardware, mobile apps, and web apps, by brokers and brokerage firms increased by 10 percent from June 2015 to December 2015. According to the President of Commercial Real Estate Brokerage respondent in Chicago, “The value proposition of brokerage is changing with technology. Today’s tenants have access to practically the same information we do. What separates successful brokers from obsolete ones is having access to information that will lead to better anytime - anywhere service.”

Increase in the use of Real Estate Tech Platforms

150

D

ec

em

be

r2

01

5

850

227

Ju

ne

20

15

773

0

500on using real estate750 Do you or250 your company use or plan technology?

1000

Total CRE Pro's Using Real Estate Tech Total CRE Pro's Not Using Real Estate Tech

Base: 1,000 Real Estate Professional Survey

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

»

2015 › 2016 Emerging Trends

Digitalized Things Are Making Assisted Leasing & Sales Decisions: The increased use of computing machines in decision making is extending into the realm of real estate. This makes one begin to think about how many of the decisions we make will be supported and automated through digital technologies.

45 percent of survey respondents believe that within the next five years, initial space searches could become automated, redefining the role of a broker to an adviser. “Today’s emerging tenants are using apps like Uber and Seamless to automate their lives. Its inevitable that searching for office space will become automated in the future,” according to a Commercial Real Estate Vice President of Brokerage in NYC.

The Automation of Real Estate

5%

45% 50%

Yes No Not Sure

Do you believe that within the next five years, the initial space searches could become automated?

Base: 1,000 Real Estate Professional Survey

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

»

2015 › 2016 Emerging Trends

Renovating the Tenant Experience Is a Digital Priority: The future of real estate businesses is predicated on the innovation of customer experience. Pertaining exclusively to commercial real estate brokerage and leasing, decoding the needs of tenants puts capital in the bank, but short-term commercial leases prevail. Nearly 75 percent of this years RE:Tech Futures study believe that digital and community engagement will help in attain new business. According to a commercial real estate principleowner in NYC, “Having a clear and better understanding of tenants has a clear return on investment and performance of our assets.” The clear understanding of better digital real estate engagement reinforces the growing trend of real estate brokerage firms creating and adopting a more outward facing company focus to inbound future tenants and clients. “Today’s early stage tech companies do their homework and take the initiative on searching for office space,” says an Asset Manager in San Francisco.

Technology’s Impact on Real Estate

10% 15%

75% Very Important Moderately Important Not Important

How important is having a digital and community facing presence to attain to new business?

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

About RE:Tech

Leadership Starts By Doing RE:Tech is a commercial real estate research marketing consultancy that believes in a new way of driving growth. By fusing data, creativity, and strategy, we help our clients uncover new ways to grow their brands & businesses. RE:Tech › Insight is grounded our exclusive network of 200,000 commercial real estate professionals and innovative business leaders worldwide. Through our proprietary research, data, custom consulting, and events, the RE:Tech experience is aimed at helping our clients maker better decisions with better insight & data.

About RE:Tech › Insight Corporate Solutions Leaders in real estate market research, RE:Tech Corporate Solutions business helps corporations of all sizes improve productivity and efficiency, by thinking differently. Our expertise in real estate, marketing, technology, and psychology, allows us to see opportunities differently and break down silos to deliver unique solutions for pioneering commercial real estate companies, early stage real estate tech companies, investors, coworking spaces, government agencies, non-for-profits, and educational institutions.

Contact Us: Web www.retech.net E-Mail [email protected] Emerging Trends in Real Estate Tech

RE:Tech › Futures Report

www.retech.net RE:Tech
 © 2015 Finca Media Group, LLC. All rights reserved. For further details or to unsubscribe, please email [email protected]. The items in this publication have been compiled from the various sources acknowledged. The information is from sources we deem reliable; however, no representation or warranty is made to the accuracy thereof.

Emerging Trends in Real Estate Tech

RE:Tech › Futures Report