New Report Reveals Gaps and Opportunities in CRE Technology
July 18, 2018
FOR IMMEDIATE RELEASE
New research from BOMA International and Building Engines uncovers challenges and keys to success in technology selection, integration and adoption from more than 600 property professionals
(Washington, D.C. – July 18, 2018) The Building Owners and Managers Association (BOMA) International and Building Engines announced the findings of a study on technology trends in the commercial real estate (CRE) industry on June 24 at the organization’s annual conference, held at the Henry B. González Convention Center in San Antonio. The report, “Commercial Real Estate Technology Trends 2018 ” answers critical questions, including:
How effectively are CRE professionals using property operations technology?
- How are highly effective organizations using technology differently than others?
- What feature gaps exist in current CRE technology solutions?
- What do industry professionals expect for the future of CRE technology?
“CRE professionals are under increasing pressure to meet tenant expectations, reduce operating costs and adopt a host of constantly changing technologies,” said 2017-2018 BOMA International Chair Rob Brierley, BOMA Fellow, managing director of Real Estate Management Services and executive vice president of Colliers Boston. “BOMA International’s Technology Committee commissioned this research to understand how organizations maximize their investment in technology in the midst of such rapid change.”
“This report provides a roadmap for CRE organizations wanting to get more out of the technology that underpins operations at their buildings,” said Phil Mobley, vice chair of BOMA International’s Technology Committee and head of Research for Building Engines. “What we learned from the results is that ‘Achievers’ - the most technologically effective CRE organizations - are not afraid to explore the latest solutions, they invest strategically in technology, and they focus on securing broad and deep adoption across their teams.”
About the Report
The basis for this CRE Technology Trends Report was the CRE Technology Effectiveness Survey conducted in February of 2018. The results revealed the attitudes, characteristics and practices that distinguish technologically effective CRE organizations from their peers. Respondents fell into clear categories:
- Achievers (ahead of the curve in technology adoption and deployment);
- Maintainers (keeping pace with changes in technology); and
- Trailers (lagging industry averages in technology adoption rates and results).
More than 600 respondents completed the survey, representing a comprehensive set of property types, including major-market Class A/Trophy Office buildings, medical office buildings, industrial, retail and mixed-use properties. An equal mix of direct-ownership and third-party managed firms participated, and the study focused on organizations in the continental U.S.
Other key findings from the research include:
- Owners and asset managers stand to profit most from technology solutions that better address the breadth and strategic perspective of their roles. Only four percent of owners and asset managers consider themselves highly effective technology users.
- Early adoption is crucial for technology effectiveness in CRE: Achievers are four times more likely than Trailers to try new solutions as soon as they are available
- Achievers spend appropriately on technology, while Trailers tend to under-invest in tools that would help them operate better. Nearly six in 10 Achievers have “technology” as one or more budget line items, compared to fewer than four in 10 Trailers.
- Achievers have different priorities when purchasing technology than Trailers. Whereas Achievers place higher priority on customer service and brand image in their technology purchase decisions, Trailers are more focused on cost and time savings.
- Solutions mandated by corporate offices or building owners are 20 percent more likely to be “highly effective” than solutions selected at the property level.
- Achievers choose highly effective solutions four times more often than Trailers.
- Time and resource constraints are the largest obstacle to replacing underperforming CRE technology solutions.
- More than half of CRE professionals expect artificial intelligence/machine learning and drone technologies to have a significant or profound impact on the future of the industry.
Download the full report on the BOMA International website here.
About BOMA International
The Building Owners and Managers Association (BOMA) International is a federation of 88 BOMA U.S. associations and 18 international affiliates. Founded in 1907, BOMA represents the owners and managers of all commercial property types including 10.5 billion square feet of U.S. office space that supports 1.7 million jobs and contributes $234.9 billion to the U.S. GDP. Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge. Learn more at www.boma.org.
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About Building Engines
Building Engines delivers the commercial real estate industry’s most innovative web and mobile portfolio management platform, providing building teams with the data and insights they need to improve operational efficiency, mitigate risk, measure and improve tenant satisfaction and to make better, data-driven decisions.
The Building Engines integrated suite of solutions support the full range of critical building operations, including tenant engagement and service, maintenance management, communications, task management, and operational risk management.
Clients of Building Engines include many of the leading public REITs, private owner/managers and third-party management firms in the United States and Canada operating multi-tenant commercial office, medical office, retail and industrial properties.